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Market design for standardization problems with agent-based social simulation

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Abstract

This paper provides a computational market model with technological competitions among standards and presents simulations of various scenarios concerning standardization problems. The market model has three features: (1) economic entities such as consumers and firms are regarded as autonomous agents; (2) micro interactions among consumer agents or firm agents have essential mechanisms interpretable in real markets; and (3) consumers’ preferences and firms’ technologies co-affect their evolutionary behavior. In recent years, consumers have experienced various inconveniences from de facto competition based on a market mechanism. Standardization communities or committees such as the International Organization for Standardization (ISO) and the International Electrotechnical Commission (IEC) need to design a compatible standard or a de jure standard in a market. However, it is difficult for market designers to decide a method or timing for the standardization. Here, by introducing a novel technique used in agent-based social simulation (ABSS), which we call “scenario analysis,” we aim to support such decision making. Scenario analysis provides the possible market changes that can occur following implementation of a design policy under a specific market situation and the market mechanisms that generate these market changes.

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Authors and Affiliations

  1. Department of Industrial and Management Systems Engineering, Waseda University, 3-4-1 Okubo, Shinjuku, Tokyo, 169-8555, Japan

    Kotaro Ohori & Shingo Takahashi

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  1. Kotaro Ohori
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  2. Shingo Takahashi
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Correspondence to Kotaro Ohori.

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Ohori, K., Takahashi, S. Market design for standardization problems with agent-based social simulation. J Evol Econ 22, 49–77 (2012). https://doi.org/10.1007/s00191-010-0196-y

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