Market Organisation and Trading Relationships

Posted: 3 Aug 2000

See all articles by Gerard Weisbuch

Gerard Weisbuch

Ecole Normale Superieure (ENS)

Alan Kirman

GREQAM

Dorothea Herreiner

Loyola Marymount University

Abstract

In this paper we give a theoretical model of buyers' behaviour on a market for a perishable good where no prices are posted. We show that if buyers learn from their own previous experience there is a sharp division between those who learn to be loyal to certain sellers and those who continue to 'shop around'. This feature remains in more general models which are simulated and is consistent with empirical data from the Marseille fish market.

JEL Classification: D40, L10

Suggested Citation

Weisbuch, Gerard and Kirman, Alan and Herreiner, Dorothea K., Market Organisation and Trading Relationships. Available at SSRN: https://ssrn.com/abstract=236195

Gerard Weisbuch

Ecole Normale Superieure (ENS) ( email )

24 rue Lhomond
Laboratoire de Physique Statistique
75005 Paris
FRANCE

Alan Kirman

GREQAM ( email )

Centre de la Vieille Charité
2, rue de la Charité
Marseille, 13002
France
+3391140770 (Phone)
+3391900227 (Fax)

Dorothea K. Herreiner (Contact Author)

Loyola Marymount University ( email )

7900 Loyola Boulevard
Los Angeles, CA 90045
United States
+1-310-338-2815 (Phone)
+1-310-338-1950 (Fax)

HOME PAGE: http://myweb.lmu.edu

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