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MY versus DF

The MY manage to do much better than the DF as can be seen from Figure 13. In Figure 13 a. we see that the MY average prices are higher with the presence of the df. Probably some DF have very low prices, and so the MY will choose the highest price rather than undercut and will thereby elevate the MY average profit. By being forced to choose higher prices, the MY end up with less profit when there are df, see Figure 13 b. However on the whole, the MY end up with more average profit than the df, and consequently the DF disappear from the propulation, see Figure 13 c.

The MY profits are pulled down because DF prices are lower than the MY prices on average (lower than GT prices too).

$\scalebox{0.78}[.78]{\includegraphics[scale=.53]{pricemydf.eps}}$ $\scalebox{0.78}[.78]{\includegraphics[scale=.53]{profitmydf.eps}}$ $\scalebox{0.78}[.78]{\includegraphics[scale=.53]{nummydf.eps}}$

Figure 13. a. Average prices, b. Average profits, and c. Number for MY and DF pricebots starting with 50 MY and 50 DF pricebots originally

Victoria Manfredi
2001-08-02