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- Article] Multiscale Agent-Based Consumer Market Modeling
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DocNo of ILP: 2678
Doc. Type: Article
Title: Multiscale Agent-Based Consumer Market Modeling
Authors: North, MJ; Macal, CM; St Aubin, J; Thimmapuram, P; Bragen, M; Hahn, J; Karr, J; Brigham, N; Lacy, ME; Hampton, D
Full Name of Authors: North, Michael J.; Macal, Charles M.; St Aubin, James; Thimmapuram, Prakash; Bragen, Mark; Hahn, June; Karr, James; Brigham, Nancy; Lacy, Mark E.; Hampton, Delaine
Keywords by Author: consumer market modeling; multiscale modeling; agent-based modeling
Keywords Plus:
Abstract: Consumer markets have been studied in great depth, and many techniques have been used to represent them. These have included regression-based models, logit models, and theoretical market-level models, such as the NBD-Dirichlet approach. Although many important contributions and insights have resulted from studies that relied on these models, there is still a need for a model that could more holistically represent the interdependencies of the decisions made by consumers, retailers, and manufacturers. When the need is for a model that could be used repeatedly over time to support decisions in an industrial setting, it is particularly critical. Although some existing methods can, in principle, represent such complex interdependencies, their capabilities might be outstripped if they had to be used for industrial applications, because of the details this type of modeling requires. However a complementary method-agent-based modeling-shows promise for addressing these issues. Agent-based models use business-driven rules for individuals (e.g., individual consumer rules for buying items, individual retailer rides for stocking items, or individual firm rules for advertizing items) to determine holistic, system-level outcomes (e.g., to determine if brand X's market share is increasing). We applied agent-based modeling to develop a multi-scale consumer market model. We then conducted calibration, verification, and validation tests of this model. The model was successfully applied by Procter & Gamble to several challenging business problems. In these situations, it directly influenced managerial decision making and produced substantial cost savings. (C) 2010 Wiley Periodicals, Inc. Complexity 15: 37-47, 2010
Cate of OECD: Mathematics
Year of Publication: 2010
Business Area: gamble
Detail Business: gamble
Country: USA
Study Area:
Name of Journal: COMPLEXITY
Language: English
Country of Authors: [North, Michael J.; Macal, Charles M.] Argonne Natl Lab, Ctr Complex Adapt Agent Syst Simulat, Argonne, IL 60439 USA; [St Aubin, James; Bragen, Mark] Argonne Natl Lab, Modeling Simulat & Visualizat Grp, Argonne, IL 60439 USA; [Thimmapuram, Prakash] Argonne Natl Lab, Ctr Energy Environm & Econ Syst Anal, Argonne, IL 60439 USA; [Hahn, June; Karr, James; Brigham, Nancy; Lacy, Mark E.; Hampton, Delaine] Procter & Gamble Co, Cincinnati, OH 45202 USA
Press Adress: North, MJ (reprint author), Argonne Natl Lab, Ctr Complex Adapt Agent Syst Simulat, 9700 S Cass Ave, Argonne, IL 60439 USA.
Email Address: north@anl.gov
Citaion:
Funding:
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Number of Citaion: 31
Publication: JOHN WILEY & SONS INC
City of Publication: HOBOKEN
Address of Publication: 111 RIVER ST, HOBOKEN, NJ 07030 USA
ISSN: 1076-2787
29-Character Source Abbreviation: COMPLEXITY
ISO Source Abbreviation: Complexity
Volume: 15
Version: 5
Start of File: 37
End of File: 47
DOI: 10.1002/cplx.20304
Number of Pages: 11
Web of Science Category: Mathematics, Interdisciplinary Applications; Multidisciplinary Sciences
Subject Category: Mathematics; Science & Technology - Other Topics
Document Delivery Number: 594YE
Unique Article Identifier: WOS:000277576400005
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