Advanced Search
MyIDEAS: Login to save this article or follow this journal

An agent-based model of innovation diffusion: network structure and coexistence under different information regimes

Contents:

Author Info

  • Giovanni Pegoretti

    ()

  • Francesco Rentocchini

    ()

  • Giuseppe Vittucci Marzetti

    ()

Abstract

The paper analyzes how the structure of social networks affects innovation 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 demonstration effect from previous adopters). A high social cohesion decreases the probability of one innovation cornering the market. Nonetheless, with imperfect information, in small-world networks the higher speed of diffusion produced by the low average distance increases this probability. A low social cohesion also increases the probability of falling into traps of under-adoption. However, such probability is significantly lower with imperfect information, because such regime is characterized by higher levels of market concentrations and this reduces the frictions due to the coexistence of non-compatible product innovations. Copyright Springer-Verlag 2012

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://hdl.handle.net/10.1007/s11403-012-0087-4
Download Restriction: Access to full text is restricted to subscribers.

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

Bibliographic Info

Article provided by Springer in its journal Journal of Economic Interaction and Coordination.

Volume (Year): 7 (2012)
Issue (Month): 2 (October)
Pages: 145-165

as in new window
Handle: RePEc:spr:jeicoo:v:7:y:2012:i:2:p:145-165

Contact details of provider:
Web page: http://www.springer.com/economics/economic+theory/journal/11403

Order Information:
Web: http://link.springer.de/orders.htm

Related research

Keywords:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Cowan,Robin & Jonard,Nicolas, 1999. "Network Structure and the Diffusion of Knowledge," Research Memorandum 026, Maastricht University, Maastricht Economic Research Institute on Innovation and Technology (MERIT).
  2. Banerji, A & Dutta, Bhaskar, 2005. "Local Network Externalities and Market Segmentation," The Warwick Economics Research Paper Series (TWERPS) 725, University of Warwick, Department of Economics.
  3. Arenas, Alex & Diaz-Guilera, Albert & Perez, Conrad J. & Vega-Redondo, Fernando, 2002. "Self-organized criticality in evolutionary systems with local interaction," Journal of Economic Dynamics and Control, Elsevier, vol. 26(12), pages 2115-2142, October.
  4. Geroski, Paul A, 1999. "Models of Technology Diffusion," CEPR Discussion Papers 2146, C.E.P.R. Discussion Papers.
  5. Rabik Ar Chatterjee & Jehoshua Eliashberg, 1990. "The Innovation Diffusion Process in a Heterogeneous Population: A Micromodeling Approach," Management Science, INFORMS, vol. 36(9), pages 1057-1079, September.
  6. Goyal, Sanjeev & Janssen, Maarten C. W., 1997. "Non-Exclusive Conventions and Social Coordination," Journal of Economic Theory, Elsevier, vol. 77(1), pages 34-57, November.
  7. Cowan,Robin & Jonard,Nicolas, 2000. "The Dynamics of Collective Invention," Research Memorandum 018, Maastricht University, Maastricht Economic Research Institute on Innovation and Technology (MERIT).
  8. Krishnamurthy, Sandeep, 2003. "A managerial overview of open source software," Business Horizons, Elsevier, vol. 46(5), pages 47-56.
  9. Frank M. Bass, 2004. "Comments on "A New Product Growth for Model Consumer Durables The Bass Model"," Management Science, INFORMS, vol. 50(12_supple), pages 1833-1840, December.
  10. Martin Hohnisch & Sabine Pittnauer & Dietrich Stauffer, 2008. "A percolation-based model explaining delayed takeoff in new-product diffusion," Industrial and Corporate Change, Oxford University Press, vol. 17(5), pages 1001-1017, October.
  11. Swann, G. M. Peter, 2002. "The functional form of network effects," Information Economics and Policy, Elsevier, vol. 14(3), pages 417-429, September.
  12. Cecere, Grazia & Corrocher, Nicoletta, 2011. "The intensity of VoIP usage in Great Britain: Users' characteristics and firms' strategies," Telecommunications Policy, Elsevier, vol. 35(6), pages 522-531, July.
  13. Andrea Morrison, 2008. "Gatekeepers of Knowledge within Industrial Districts: Who They Are, How They Interact," Regional Studies, Taylor & Francis Journals, vol. 42(6), pages 817-835.
  14. Vega-Redondo,Fernando, 2007. "Complex Social Networks," Cambridge Books, Cambridge University Press, number 9780521857406, April.
  15. Delre, S.A. & Jager, W. & Bijmolt, T.H.A. & Janssen, M.A., 2007. "Targeting and timing promotional activities: An agent-based model for the takeoff of new products," Journal of Business Research, Elsevier, vol. 60(8), pages 826-835, August.
  16. Uchida, Makoto & Shirayama, Susumu, 2008. "Influence of a network structure on the network effect in the communication service market," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 387(21), pages 5303-5310.
  17. Yann Bramoullé & Rachel Kranton, 2007. "Risk Sharing Across Communities," American Economic Review, American Economic Association, vol. 97(2), pages 70-74, May.
  18. Vega-Redondo,Fernando, 2007. "Complex Social Networks," Cambridge Books, Cambridge University Press, number 9780521674096, April.
  19. H. Peyton Young, 2009. "Innovation Diffusion in Heterogeneous Populations: Contagion, Social Influence, and Social Learning," American Economic Review, American Economic Association, vol. 99(5), pages 1899-1924, December.
  20. Koen Frenken & Gerald Silverberg & Marco Valente, 2008. "A Percolation Model of the Product Lifecycle," DRUID Working Papers 08-20, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
  21. Albert C. Bemmaor & Janghyuk Lee, 2002. "The Impact of Heterogeneity and Ill-Conditioning on Diffusion Model Parameter Estimates," Marketing Science, INFORMS, vol. 21(2), pages 209-220, November.
  22. Katz, Michael L & Shapiro, Carl, 1985. "Network Externalities, Competition, and Compatibility," American Economic Review, American Economic Association, vol. 75(3), pages 424-40, June.
  23. Eocman Lee & Jeho Lee & Jongseok Lee, 2006. "Reconsideration of the Winner-Take-All Hypothesis: Complex Networks and Local Bias," Management Science, INFORMS, vol. 52(12), pages 1838-1848, December.
  24. Arthur, W Brian, 1989. "Competing Technologies, Increasing Returns, and Lock-In by Historical Events," Economic Journal, Royal Economic Society, vol. 99(394), pages 116-31, March.
  25. Jean-Michel Dalle, 1997. "Heterogeneity vs. externalities in technological competition: A tale of possible technological landscapes," Journal of Evolutionary Economics, Springer, vol. 7(4), pages 395-413.
  26. Frank M. Bass, 1969. "A New Product Growth for Model Consumer Durables," Management Science, INFORMS, vol. 15(5), pages 215-227, January.
  27. John H. Miller & Robin Cowan, 1998. "Technological standards with local externalities and decentralized behaviour," Journal of Evolutionary Economics, Springer, vol. 8(3), pages 285-296.
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Paolo Zeppini & Koen Frenken & Luis R. Izquierdo, 2013. "Innovation diffusion in networks: the microeconomics of percolation," Working Papers 13-02, Eindhoven Center for Innovation Studies, revised Feb 2013.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:spr:jeicoo:v:7:y:2012:i:2:p:145-165. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Guenther Eichhorn) or (Christopher F Baum).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.