CONSUMER BEHAVIOR UNDER BOUNDED RATIONALITY: AN AGENT-BASED SIMULATION MODEL

This paper proposes an agent-based simulation model to represent consumer behaviour in markets defined by Marketing Mix attributes. In contrast to utility maximisation approaches, the model adopts bounded rationality, using satisficing-type decision rules. Consumers are represented as autonomous and heterogeneous agents who evaluate alternatives based on minimum thresholds for attributes such as price, quality, promotion and availability, ceasing their search once an acceptable option is found. The model allows for the investigation of how different levels of stringency influence purchase rates and market share. The results indicate a reduction in purchase rates as stringency increases and highlight the predominance of non-compensatory decisions. This research contributes to the integration of consumer behaviour theory, marketing and computational simulation.