Market Model with Heterogeneous Buyers

The standard economics textbooks make the supply-demand law as one of the pillars of the modern economic theory. However, many people, especially economists, gradually realize that the most important factor is missing in the traditional supply-demand law. The study of complex systems has already led to novel approaches to market phenomena. In the modern economy we face a much more complex world, where products have
many attributes and consumers have heterogeneous tastes. These preferences cannot be simply represented as price and quality alone. In this paper, a market model build and its behavior under various circumstances investigated. In the first part of the paper, The Authors do not consider correlations between preferences of the parties included in the system. While unrealistic, this assumption allows The Authors to discover basic properties of the model and outline the way of reasoning which can be used also in later, more realistic considerations. In the second part of the paper, correlations and the ways how they can be introduced to the system discussed. The last part of the paper deals with the consequences of the correlations for the model.