Learning How to Consume and Returns to Product Promotion

This paper presents the computational model of consumer behaviour. We consider two sources of product specic consumer skill acquisition, termed here as learning how to consume: learning by consuming and consumer socialization. Consumers utilize these two sources in order to derive higher valuations for products they are consuming. In this framework we discuss the behavior of returns to product promotion relative to the changes in product characteristics, such as quality and userfriendliness, as well as in case of varying intensity of consumer socialization. The main finding is that in case of duopoly the dependence of returns to advertising on product quality is not monotonic as it has been claimed by earlier studies. Additional important finding indicating the importance of the models with interacting agents is that returns to advertising exhibit qualitatively different behavior in case of zero intensity of consumer socialization.Consumer skills, learning by consuming, consumer socialization, product promotion, returns to advertising

Psychologically Plausible Models in Agent-Based Simulations of Sustainable Behavior

Agent-based modelling (ABM) proves successful as a methodology for the social sciences. To continue bridging the micro-macro link in social simulations and applying ABM in real-world conditions, conventional and often simplified models of decision-making have to be utilized and extended into psychologically plausible models. We demonstrate the contribution of such models to enhance validation and forecasts in social simulations with two examples concerned with sustainable behavior. We start with the Consumat framework to demonstrate the contribution of an established psychological plausible decision-making model in various scenarios of sustainable behavior. Then we use the SiMA-C model to explain how different psychological factors generate social behavior and show how a detailed model of decision-making supports realistic empirical validation and experimentation. A scenario of social media prompting of environmental-friendly behavior exemplifies the details of how individual decision-making is influenced by the social context. Both examples, Consumat and SiMA-C, emphasize the importance of psychological realism in modelling behavioral dynamics for simulations of sustainable behavior and provide explanations on the psychological level that enable the development of social policies on the individual level

Incentive Mechanisms for Participatory Sensing: Survey and Research Challenges

Participatory sensing is a powerful paradigm which takes advantage of smartphones to collect and analyze data beyond the scale of what was previously possible. Given that participatory sensing systems rely completely on the users' willingness to submit up-to-date and accurate information, it is paramount to effectively incentivize users' active and reliable participation. In this paper, we survey existing literature on incentive mechanisms for participatory sensing systems. In particular, we present a taxonomy of existing incentive mechanisms for participatory sensing systems, which are subsequently discussed in depth by comparing and contrasting different approaches. Finally, we discuss an agenda of open research challenges in incentivizing users in participatory sensing.Comment: Updated version, 4/25/201

Hedonism and Culture: Impact on Shopper Behaviour

Increasingly consumer shopping behaviour is being seen from the holistic perspective of the entire shopping experience. The experiential view of shopping takes a far more holistic approach to the consumption process, right from involvement to post purchase usage, and incorporates the hedonistic perspective into the existing, primarily cognitive- rational information processing view of consumption. Hedonic shopping value refers to the sense of enjoyment and pleasure that the consumer receives from the entire buying experience associated with shopping at a store and this value perception could vary depending on individual shopping orientations, the cultural orientations as well as the economic and competitive environment in which the consumer shops. This paper attempts to understand the impact of all three factors on the purchase behaviour of shoppers by examining hedonic value across different product categories signifying different shopping orientations; across culturally distinct countries; across developing and developed economies; and across different stages of retail evolution.

A SOCIO-COGNITIVE BASIS FOR STRATEGIC GROUPS: COGNITIVE DISSONANCE IN SWINE GENETICS

Institutional and Behavioral Economics, Livestock Production/Industries,

Inertia, Interaction and Clustering in Demand

We present a discrete choice model of consumption that incorporates two empirically validated aspects of consumer behaviour: inertia in consumption and interaction among consumers. We specify the interaction structure as a regular lattice with consumers interacting only with immediate neighbours. We investigate the equilibrium behaviour of the resulting system and show analytically that for a large range of initial conditions clustering in economic behaviour emerges and persists indefinitely. Short-run behaviour of the model is investigated numerically. This exercise indicates that equilibrium properties of the system can predict a short-run behaviour of the model quite accurately.Clustering, Interaction, Habits, Consumer choice

Agent-Based Models and Human Subject Experiments

This paper considers the relationship between agent-based modeling and economic decision-making experiments with human subjects. Both approaches exploit controlled ``laboratory'' conditions as a means of isolating the sources of aggregate phenomena. Research findings from laboratory studies of human subject behavior have inspired studies using artificial agents in ``computational laboratories'' and vice versa. In certain cases, both methods have been used to examine the same phenomenon. The focus of this paper is on the empirical validity of agent-based modeling approaches in terms of explaining data from human subject experiments. We also point out synergies between the two methodologies that have been exploited as well as promising new possibilities.agent-based models, human subject experiments, zero- intelligence agents, learning, evolutionary algorithms