Seminario de investigación del GIDE

"When resorts’ quality is not directly observable before consumption, destinations have various signaling tools to capture customers, among others: the number of customers, the type of customers and pricing strategies. Taking into consideration companies that seek to increase their profits and customers with budget restrictions and with both individual and social preferences, this work analyzes price dynamics and conditions of market competition, under an Agent-Based Modelling (ABM) setting. An emerging result of this process is the formation of companies with greater market power and high customer differentiation, although less than in the case without budget restrictions. At the same time, adjustment speed of the companies have non-linear effects on prices, the benefits of the resorts and individuals’ utility. Another emerging result is that price dynamics is highly sensitive to the information that both resorts and individuals have."