Market choices driven by reference groups. An evolutionary approach.
The present paper tries to answer analytically how much the reference group influence can affect an actual market share of a particular brand or product. It is found that the increase of the size of a reference group and the probability of following the majority within the reference group may lead to the temporary modest prevalence of one brand. This result requires a relatively large size of a reference group and a high probability of following the majority within the reference group. If these conditions are not satisfied the effect on the market share is negligible.
Department of Mathematics and Mathematical Economics, Warsaw School of Economics, Al. Niepodłeglości 162, Warsaw, 02-554 Poland.
Michał
M
Ramsza
Learning; Population games; Reference groups influence