Abstract

The paper analyses the variety of supermarkets’ strategies (imitation and innovation) through economic experiment under which sales and prices will adapt to market demand. We compared strategies of supermarkets to demonstrate the advantages of supermarkets’ strategy for imitators and innovators under different conditions. Our proposed algorithm for competitive supermarket model with fuzzy demand can be employed as a competitive strategy in a microeconomic system in which a wide range of different products/services are sold through supermarkets. We reveal the profitability of imitation strategy increases in the long-run period. With a small number of supermarkets (two or three), the innovative strategy of supermarkets turns out to be more beneficial. The number of supermarkets, number of steps and average price of products has a positive impact on the profit of supermarkets of both types.  

Keywords: supermarket strategies, economic experiment, imitation strategy, innovation strategy, adaptive algorithm

JEL Classification: C63,D43, D47, L13.

Cite as: Kobets, V., & Yatsenko, V. (2018). What can economic experiments discover about evolutionary effectiveness of supermarket strategies?. Marketing and Management of Innovations, 1, 152-168. https://doi.org/10.21272/mmi.2018.1-11

This work is licensed under a Creative Commons Attribution 4.0 International License

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