posted on 2017-11-02, 06:17authored byMoss, Simon, Haslett, Tim, Osborne, Charles
This paper attempts to derive predictions of consumer behaviour from nonlinear dynamics and local rule theory. In particular, a model that was originally formulated to predict performance in the stock market was applied to anticipate the effects of price changes to car parking behaviour. The degree of crowd influence and fundamental bias were designated as the key determinants of consumer responses. The results revealed that small price changes to parking fees created a transient pattern of unstable behaviour. Ultimately, parking behaviour returned to the baseline pattern but at a different level. These findings could be readily accommodated by, and generally predicted from, the tenets of complexity theory.
History
Year of first publication
2000
Series
Working paper series (Monash University. Department of Management).