Abstract for: A Simulation Framework for Assessing the Viability of a Consumer-to-consumer Ecommerce System
In the past decade, ecommerce created new business models. Information Technology leveled the playing field for new participants, who were capable of causing disruptive changes in every industry. It is now easy to be influenced to make choices of services based on recommendations of friends and popularity amongst peers. We propose a framework to investigate how actions of stakeholders in an ecommerce system affect system performance. Viewing consumer-to-consumer ecommerce from a systems perspective calls for integration of different levels of behaviors. Complex interactions exist among stakeholders, the environment and available technology. The presence of continuous and discrete behaviors coupled with stochastic and deterministic behaviors present challenges for using standalone simulation tools to simulate the business model. The proposed framework takes into account dynamic system complexity and risk. By combining system dynamics at the strategy level with agent-based models of consumer behaviors, a representation of the business model that makes for sound basis of decision making can be achieved. The proposed framework is applied to a peer-to-peer lending case study.