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Marketing percolation

Author

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  • Goldenberg, J
  • Libai, B
  • Solomon, S
  • Jan, N
  • Stauffer, D

Abstract

A percolation model is presented, with computer simulations for illustrations, to show how the sales of a new product may penetrate the consumer market. We review the traditional approach in the marketing literature, which is based on differential or difference equations similar to the logistic equation (Bass, Manage. Sci. 15 (1969) 215). This mean-field approach is contrasted with the discrete percolation on a lattice, with simulations of “social percolation” (Solomon et al., Physica A 277 (2000) 239) in two to five dimensions giving power laws instead of exponential growth, and strong fluctuations right at the percolation threshold.

Suggested Citation

  • Goldenberg, J & Libai, B & Solomon, S & Jan, N & Stauffer, D, 2000. "Marketing percolation," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 284(1), pages 335-347.
    • Handle: RePEc:eee:phsmap:v:284:y:2000:i:1:p:335-347
    DOI: 10.1016/S0378-4371(00)00260-0
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