An Agent-Based Model of Product Competition: Network Structure and Coexistence Under Different Information Regimes
20 Pages Posted: 11 May 2010
Date Written: April 1, 2010
Abstract
The paper analyzes how the structure of social networks affects product diffusion and competition under different information regimes. Diffusion is modeled as the result of idiosyncratic adoption thresholds, local network effects, and information diffusion broadcasting and word-of mouth by previous adopters). A high social cohesion tends to decrease the probability of one product cornering the market. However, in small-world networks, the higher speed of diffusion produced by the low average distance increases such probability.
Keywords: Agent-based model, innovation diffusion, network effects, social networks, small-world
JEL Classification: D83, D85, M31, O33
Suggested Citation: Suggested Citation
Do you have a job opening that you would like to promote on SSRN?
Recommended Papers
-
Collaborative Networks as Determinants of Knowledge Diffusion Patterns
By Jasjit Singh
-
Complexity, Networks and Knowledge Flow
By Olav Sorenson, Jan W. Rivkin, ...
-
Small Worlds and Regional Innovation
By Lee Fleming, Charles King, ...
-
How Do I Know What You Know? Patent Examiners and the Generation of Patent Citations
By Juan Alcacer and Michelle Gittelman
-
Science and the Diffusion of Knowledge
By Olav Sorenson and Lee Fleming
-
Distributed R&D, Cross-Regional Knowledge Integration and Quality of Innovative Output
By Jasjit Singh
-
Interfirm Collaboration Networks: The Impact of Small World Connectivity on Firm Innovation
-
Small‐World Networks and Management Science Research: A Review
By Brian Uzzi, Luis A. N. Amaral, ...
-
The World is Not Small for Everyone: Inequity in Searching for Knowledge in Organizations
By Jasjit Singh, Morten T. Hansen, ...