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Evolutionary and Adaptive Economic Behavior
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167 b
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When confronted with product whose attributes are§unknown, §consumers can determine its quality by either trying§it or wait to §observe the experience of predecessors. Based on this§attitude, we §illustrate the economic behavior of choice among movie §goers and how distributors and exhibitors adapt to§the behavior to §optimize Box O ce collection. Speci cally, we explain§how the §adaptive behavior among the heterogeneous consumers§enables the §evolution of optimal choice. Although the arrival of§choice can §explain the convergence or clustering of opinions, it§is not a static §point in the classical economic equilibrium sense.§Rather, the arrival §of new innovations and information necessitates the§constant §adjustment of opinions to suit the requirement of the§environment. §This dynamism is accounted for in the release and§portfolio decision §in exhibition market, especially the exhibition§contract crafted §should be adaptive and contingent to the demand revealed §throughout the runs of a lm.
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