A Spatial Agent-Based Consumer Model: Maximizing and Satisfying Behavior within Multi-Store Market

Abstract

In this paper, we propose using a mixed genetic-floyd-warshall algorithm in combination with a Floyd-warshall algorithm to model the satisficing behaviour of consumers across spatially differentiated stores. Consumer agents can pick a basket of goods from different stores to either maximize their utility or to “satisfice” by selecting the first basket with a utility that is higher than their satisfaction threshold. The Floyd-warshall algorithm is used to find the shortest path between two chosen stores by considering travel cost. Factors such as price, quality of goods, the cost of travel to the store, consumers' decision-making preferences, and store locations play significant roles in the decision-making process of consumer agents. The model is tested based on mechanisms at the individual level to show how the model works and at the macro-level to reproduce foundational theories in economics.

Keywords

• economic modeling
• consumer behavior
• knowledge-based decision
• spatial agent-based modeling