The simplest Model Prices and quantities The buyers will wish to buy a quantity from sellers given the price per unit p which is proposed and are able to resell in their own local market where they face a demand function , which determines the relationship between the price they obtain and the quantity q that they bring to the local market. For the model any monotonic decreasing function would suffice. We suppose then that the buyer knows the demand curve he faces and is thus able to compute the quantity that will maximise his profit for a given price p proposed by the seller.
Customers choose one shop everyday.
Whether they do get supplies when they visit the shop depends upon the time they visit the shop, which is randomly chosen in the simulations. It also depends on how much the sellers bring each day to the market. Each day sellers bring a fish quantity Q in relation to , the expected number of customers for that day. In the simplest version of the model, this fish quantity is , where is the number of customers who visited yesterday and a constant extra fraction brought to attract for the future extra customers that could show up.