A Kinetic model for an agent based market simulation

Hans Armbruster, Christian Ringhofer, Andrea Thatcher

Research output: Contribution to journalArticlepeer-review

3 Scopus citations


A kinetic model for a specic agent based simulation to generate the sales curves of successive generations of high-end computer chips is devel-oped. The resulting continuum market model consists of transport equations in two variables, representing the availability of money and the desire to buy a new chip. In lieu of typical collision terms in the kinetic equations that discontinuously change the attributes of an agent, discontinuous changes are initiated via boundary conditions between sets of partial differential equations. A scaling analysis of the transport equations determines the different time scales that constitute the market forces, characterizing different sales scenarios. It is argued that the resulting model can be adjusted to generic markets of multi-generational technology products where the innovation time scale is an important driver of the market.

Original languageEnglish (US)
Pages (from-to)527-542
Number of pages16
JournalNetworks and Heterogeneous Media
Issue number3
StatePublished - 2015


  • Kinetic theory
  • agent based simulations
  • market models
  • multi- generational technology products

ASJC Scopus subject areas

  • Statistics and Probability
  • General Engineering
  • Computer Science Applications
  • Applied Mathematics


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