Computationally-limited myoptimal sellers have access to the same unlimited information that myoptimals do, but are more limited in computational capability. They differ from myoptimals only in that they do not perform an exhaustive search over all possible prices. In our implementation, computationally-limited myoptimals consider the current price and 10 other randomly generated candidate prices. With probability 0.9, the candidate prices are generated from a gaussian distribution with standard deviation 0.02 centered about the current price. A typical simulation run is illustrated in Fig.
All buyers are quality-sensitive.
It is useful to consider the opposite extreme, in which sellers are uninformed about their competitors and the buyer population. If the price has just undergone a small or big jump, the profit that accrues until the next opportunity for a price adjustment is measured. The profit per unit time is compared to what it was prior to the jump. If it is higher, then the new price is retained. If it is not, then the price reverts to what it was before.