Knowledge Sharing Effects on the Market of Used Durable Goods: Agent-based Simulation Approach

Abstract

Knowledge sharing online is most common activity for both sellers and buyers in used durables market, however the purposes of two sides are total different. One can search for valuable information regarding to quality evaluation knowledge to learn and avoid accepting not-so-good cars, as well as the other can leverage the reputations from learners` online trust to make more customers and profits through introducing honest quality in fair and reasonable value. This paper resents an agent-based model for modeling the interaction between knowledge sharing repository, such as forum or feedback system, and used-car market, and introduces knowledge recognizable quality k-quality as the linkage between two sides. In knowledge sharing repository where seller agents use different strategies: altruistic sharing, sharing basic knowledge, and advertising, to create articles would impress potential consumers, and leverage influence among participants to adjust profit margin. And buyers can read and learn available information from to increase their own knowledge and receive others` influences. In this paper, we use agent-based modeling to examine the seller`s strategies about sharing price evaluation knowledge to customers, and look into the profit change while agents interact in both knowledge exchange market and used-cars market.