A Markovian model market—Akerlof’s lemons and the asymmetry of information

Autor: Gerson Francisco, Fernando F. Ferreira, Carlos Pereira, Flavia Medeiros Sarti, Paulo F. C. Tilles
Přispěvatelé: Universidade de São Paulo (USP), Universidade Estadual Paulista (Unesp)
Rok vydání: 2011
Předmět:
Zdroj: Repositório Institucional da USP (Biblioteca Digital da Produção Intelectual)
Universidade de São Paulo (USP)
instacron:USP
Web of Science
Repositório Institucional da UNESP
Universidade Estadual Paulista (UNESP)
instacron:UNESP
ISSN: 0378-4371
DOI: 10.1016/j.physa.2011.03.007
Popis: Made available in DSpace on 2013-09-27T14:51:17Z (GMT). No. of bitstreams: 1 WOS000291136200012.pdf: 760144 bytes, checksum: dc9b3b59cbd6f617fe92a006d00f9690 (MD5) Previous issue date: 2011-07-01 Made available in DSpace on 2013-09-30T19:03:49Z (GMT). No. of bitstreams: 1 WOS000291136200012.pdf: 760144 bytes, checksum: dc9b3b59cbd6f617fe92a006d00f9690 (MD5) Previous issue date: 2011-07-01 Submitted by Vitor Silverio Rodrigues (vitorsrodrigues@reitoria.unesp.br) on 2014-05-20T14:14:29Z No. of bitstreams: 1 WOS000291136200012.pdf: 760144 bytes, checksum: dc9b3b59cbd6f617fe92a006d00f9690 (MD5) Made available in DSpace on 2014-05-20T14:14:29Z (GMT). No. of bitstreams: 1 WOS000291136200012.pdf: 760144 bytes, checksum: dc9b3b59cbd6f617fe92a006d00f9690 (MD5) Previous issue date: 2011-07-01 Coordenação de Aperfeiçoamento de Pessoal de Nível Superior (CAPES) Conselho Nacional de Desenvolvimento Científico e Tecnológico (CNPq) In this work we study an agent based model to investigate the role of asymmetric information degrees for market evolution. This model is quite simple and may be treated analytically since the consumers evaluate the quality of a certain good taking into account only the quality of the last good purchased plus her perceptive capacity beta. As a consequence, the system evolves according to a stationary Markov chain. The value of a good offered by the firms increases along with quality according to an exponent alpha, which is a measure of the technology. It incorporates all the technological capacity of the production systems such as education, scientific development and techniques that change the productivity rates. The technological level plays an important role to explain how the asymmetry of information may affect the market evolution in this model. We observe that, for high technological levels, the market can detect adverse selection. The model allows us to compute the maximum asymmetric information degree before the market collapses. Below this critical point the market evolves during a limited period of time and then dies out completely. When beta is closer to 1 (symmetric information), the market becomes more profitable for high quality goods, although high and low quality markets coexist. The maximum asymmetric information level is a consequence of an ergodicity breakdown in the process of quality evaluation. (C) 2011 Elsevier B.V. All rights reserved. Univ São Paulo, EACH, BR-03828000 São Paulo, Brazil Univ Estadual Paulista, Inst Fis Teor, BR-01156970 São Paulo, Brazil Univ Estadual Paulista, Inst Fis Teor, BR-01156970 São Paulo, Brazil
Databáze: OpenAIRE
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