Multilevel marketing enterprise as a branching dendrite

Authors

  • James Christopher S. Pang National Institute of Physics, University of the Philippines Diliman

Abstract

We utilize an existing greedy-based algorithm parametrized by a balancing factor bf, that can create network patterns similar to biological dendrites, to model the evolving connections of agents in a multilevel marketing (MLM) enterprise. We also employ mathematical approximations to the possible total profit gained by each agent in an MLM. We show that the population distribution we obtained is in better agreement to a specific empirical MLM data than existing agent-based preferential attachment network models. We also show that variation of bf allows recovery of extensive types of profit distributions from near perfect equality to maximal inequality as measured by the Gini coefficient G. Our results verify that branching dendrites can assimilate the features of an MLM and that its structure can dictate the enterprise’s equitability.

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Issue

Article ID

SPP2013-2C-1

Section

Complex Systems

Published

2013-10-23

How to Cite

[1]
JCS Pang, Multilevel marketing enterprise as a branching dendrite, Proceedings of the Samahang Pisika ng Pilipinas 31, SPP2013-2C-1 (2013). URL: https://proceedings.spp-online.org/article/view/SPP2013-2C-1.