A model for the size distribution of customer groups and businesses
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AbstractWe present a generalization of the dynamical model of information transmission and herd behavior proposed by Eguiluz and Zimmermann, A characteristic size of group of agents s(0) is introduced. The fragmentation and coagulation rates of groups of' agents are assumed to depend on the size of the group. We present results of numerical simulations and mean field analysis, It is found that the size distribution of groups of agents n. exhibits two distinct scaling behavior depending on s less than or equal to s(0) or s > s(0). For s less than or equal to s(0), n(s) similar to s(-(5/2\delta)), while for to s(0),n(s) similar to s(-(5/2-delta)) where delta is a model parameter representing the sensitivity of the fragmentation and coagulation rates to the size of the group. Our model thus gkCS a tunable exponent f'or the size distribution together with two scaling regimes separated by a characteristic size s(0). Suitably interpreted, our model can be used to represent the formation of groups of customers for certain products produced by manufacturers. This, in turn, leads to a distribution in the size of' businesses. The characteristic sizes s(0), in this context. represents the size of a business for which the customer group becomes too large to be kept happy but too small for the business to become a brand name. (C) 2002 Published by Elsevier Science B.V.
All Author(s) ListZheng DF, Rodgers GJ, Hui PM
Journal namePhysica A: Statistical Mechanics and its Applications
Volume Number310
Issue Number3-4
Pages480 - 486
LanguagesEnglish-United Kingdom
Keywordsbusiness; customer groups; herd behavior; information transmission
Web of Science Subject CategoriesPhysics; Physics, Multidisciplinary; PHYSICS, MULTIDISCIPLINARY

Last updated on 2020-11-08 at 01:11