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Bertrand Competition with Network Effects and Switching Costs: An Agent-based Computational Approach
Journal: Yildiz Social Science Review (Vol.2, No. 1)Publication Date: 2016-05-30
Authors : Kutay Hakkı Çilingiroğlu;
Page : 65-86
Keywords : Agent-based Computational Economics; Switching Costs; Network Effects; Simulation;
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- Bertrand Competition with Network Effects and Switching Costs: An Agent-based Computational Approach
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Abstract
Economics is a complex system that requires different approaches for analysis. I analyzed switching costs
and network effects together with a new simulation approach to modeling systems composed of autonomous and interacting agents. Agent based computational economics is one of the simulation tools and an efficient tool box for complex economic systems. I developed an agent based computational model of duopolistic competition to analyze how the network effects and switching costs shape competitive outcomes by simulation methods.
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