The role of a matchmaker in buyer-vendor interactions

Lü, Linyuan; Medo, Matúš; Zhang, Yicheng

doi:10.1140/epjb/e2009-00315-0

Cited by 10 publications

(4 citation statements)

References 22 publications

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“…To apply this to the problem of matching consumer wants versus business offers requires some important modifications to the standard SMP model [4]. Firstly we note that the supply-demand relationship is not necessarily one-to-one, it is more often one-to-many, i.e.…”

Section: Matching With Partial Information Smp Revisitedmentioning

confidence: 99%

The Information Economy

Zhang

2017

Understanding Complex Systems

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In this chapter we outline a novel theory of the consumer market, in which information plays the key role. Consumers know only part of the available business offers and cannot ascertain the quality of the products they desire and businesses have even less knowledge of what consumers desire. In the market consumers and businesses must find a match with severely deficient information. Instead of optimisation under the constraints, our theory focuses on how the information constraints can be gradually reduced. We show that upon constraintreduction we do not come closer to the full information limit typically portrayed in mainstream economics; rather both consumer wants and business offers expand with concomitant new information deficiencies. Therefore the consumer market is always in non-equilibrium and information will always be deficient. We argue that in the dynamic pursuit to reduce information constraints wealth is created and this is the main driving force that powers economic growth. Information as Bottleneck for Economic TransactionsOn historical accounts, both consumer wants 1 and businesses offers expand, and this powers economic growth. Consumers and businesses seek each other in the market, either on their own or are helped by various third parties to find better matching. Whereas mainstream economics bypasses the information problem in its supplydemand law, 2 our theory will focus on how consumers and businesses find each other, and how they tackle the information deficiency problem. It will be shown that when more wants and offers are found and matched, still more will be created. 1 In economics consumer wants are are needs or desires that can be satisfied by the consumption of business offers including goods, commodities, services, and leisure activities. 2 Notable exceptions can be found in George Akerlof's [1] work on information asymmetry, and Joseph Stiglitz's [9] work on information imperfections.

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Section: Matching With Partial Information Smp Revisitedmentioning

confidence: 99%

The Information Economy

Zhang

2017

Understanding Complex Systems

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“…where ν := n/ n = nU/O. One can approximate F by extreme statistics for a normally distributed variable [19] or by relating it to the fluctuation magnitude occurring with the probability 1/U (thus for one user on average). Since these approximations are too crude to produce good fits of the data, we choose F by hand instead and then adjust A accordingly.…”

Section: P-1mentioning

confidence: 99%

Crowd avoidance and diversity in socio-economic systems and recommendations

Gualdi¹,

Medo²,

Zhang³

2013

EPL

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Recommender systems recommend objects regardless of potential adverse effects of their overcrowding. We address this shortcoming by introducing crowd-avoiding recommendation where each object can be shared by only a limited number of users or where object utility diminishes with the number of users sharing it. We use real data to show that contrary to expectations, the introduction of these constraints enhances recommendation accuracy and diversity even in systems where overcrowding is not detrimental. The observed accuracy improvements are explained in terms of removing potential bias of the recommendation method. We finally propose a way to model artificial socio-economic systems with crowd avoidance and obtain first analytical results.

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“…In this supply chain from suppliers to the final consumers, the retailers actually play the role of matchmaker with whom the market becomes more efficient [31]. Normally, a retailer can order products from more than one supplier.…”

Section: The Settings Of Modelmentioning

confidence: 99%

How altruism works: An evolutionary model of supply networks

Zhang

Lü

et al. 2012

Physica A: Statistical Mechanics and its Applications

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Recently, supply networks have attracted increasing attention from the scientific community. However, it lacks serious consideration of social preference in Supply Chain Management. In this paper, we develop an evolutionary decision-making model to characterize the effects of suppliers' altruism in supply networks, and find that the performances of both suppliers and supply chains are improved by introducing the role of altruism. Furthermore, an interesting and reasonable phenomenon is discovered that the suppliers' and whole network's profits do not change monotonously with suppliers' altruistic preference, η, but reach the best at η = 0.6 and η = 0.4, respectively. This work may shed some light on the in-depth understanding of the effects of altruism for both research and commercial applications.

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The role of a matchmaker in buyer-vendor interactions

Cited by 10 publications

References 22 publications

The Information Economy

The Information Economy

Crowd avoidance and diversity in socio-economic systems and recommendations

How altruism works: An evolutionary model of supply networks

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