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Minority Game of price promotions in fast moving consumer goods markets

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  • Groot, Robert D.
  • Musters, Pieter A.D.

Abstract

A variation of the Minority Game has been applied to study the timing of promotional actions at retailers in the fast moving consumer goods market. The underlying hypotheses for this work are that price promotions are more effective when fewer than average competitors do a promotion, and that a promotion strategy can be based on past sales data. The first assumption has been checked by analysing 1467 promotional actions for three products on the Dutch market (ketchup, mayonnaise and curry sauce) over a 120-week period, both on an aggregated level and on retailer chain level.

Suggested Citation

  • Groot, Robert D. & Musters, Pieter A.D., 2005. "Minority Game of price promotions in fast moving consumer goods markets," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 350(2), pages 533-547.
    • Handle: RePEc:eee:phsmap:v:350:y:2005:i:2:p:533-547
    DOI: 10.1016/j.physa.2004.11.010
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    References listed on IDEAS

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