Time Dependency of Promotion Effects during the Process of Monopoly Based on the Nearest Neighbor Interacting Agent Model

Abstract

It is widely known that Winner-take-all phenomenon takes place in Information Technology more easily than in other business sectors. Although there have been many works on this phenomenon, most of them are based on the equilibrium approach or fix the model parameters during the process of developing monopoly. Many firms, however, try to obtain more customers and do some promotions. It is estimated that the effect of the promotion depends on the time or the degree of monopoly in the market. We use an agent model in which each agent interacts with the nearest neighbors and see the time dependency of the promotion during the process of developing monopoly.