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Imitation and the diffusion of innovation in e-commerce

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Author Info
Mario Eboli
Abstract

This paper presents a model of adoption and diffusion of innovations that concern the technology of e-commerce. First, a model of optimal adoption of e-commerce innovation is presented. In this model web companies are assumed to behave in an imitative way: facing an innovation of uncertain profitability, they perceive the adoption decisions of other e-traders as favourable signals. This behaviour generates a network of cross-monitoring companies that is here modeled as a directional graph. Finally, the paper presents an algorithm that describes and computes the propagation of innovation in such a graph.

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Publisher Info
Paper provided by Society for Computational Economics in its series Computing in Economics and Finance 2001 with number 237.

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Date of creation: 01 Apr 2001
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Handle: RePEc:sce:scecf1:237

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Related research
Keywords: e-commerce; innovation; graph theory; networks.;

Find related papers by JEL classification:
C45 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Neural Networks and Related Topics
C63 - Mathematical and Quantitative Methods - - Mathematical Methods and Programming - - - Computational Techniques
O31 - Economic Development, Technological Change, and Growth - - Technological Change - - - Innovation and Invention: Processes and Incentives

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