TY - JOUR
T1 - MARKET DIMENSIONALITY AND THE PROLIFERATIONOF SMALL-SCALE FIRMS
AU - Garcia-Diaz, Cesar
AU - Van Witteloostuijn, Arjen
AU - Peli, Gabor
PY - 2008/4
Y1 - 2008/4
N2 - We build an agent-based computational model to study how the changing number ofactive product variants in a two-dimensional product space affects the performance ofdifferent firm types (i.e. large-scale and small-scale enterprises). We use an alternativeapproach to measure product space dimensionality, considering that dimensions maybe a fraction of the Euclidean measure. The results confirm that high dimensionalitygives advantage to small-scale firms. Additionally, we find that large-scale firms may alsobenefit from initial increasing dimensionality, since it allows a small degree of productdifferentiation and price discrimination.
AB - We build an agent-based computational model to study how the changing number ofactive product variants in a two-dimensional product space affects the performance ofdifferent firm types (i.e. large-scale and small-scale enterprises). We use an alternativeapproach to measure product space dimensionality, considering that dimensions maybe a fraction of the Euclidean measure. The results confirm that high dimensionalitygives advantage to small-scale firms. Additionally, we find that large-scale firms may alsobenefit from initial increasing dimensionality, since it allows a small degree of productdifferentiation and price discrimination.
KW - Agent-based modeling
KW - Market dimensionality
KW - Market evolution
UR - https://www.webofscience.com/api/gateway?GWVersion=2&SrcApp=pure_puj3&SrcAuth=WosAPI&KeyUT=WOS:000255609900006&DestLinkType=FullRecord&DestApp=WOS_CPL
UR - https://www.worldscientific.com/doi/epdf/10.1142/S0219525908001593
U2 - 10.1142/S0219525908001593
DO - 10.1142/S0219525908001593
M3 - Article
SN - 0219-5259
VL - 11
SP - 231
EP - 247
JO - Advances in Complex Systems
JF - Advances in Complex Systems
IS - 2
ER -