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The Bass diffusion model on networks with correlations and inhomogeneous advertising

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  • Bertotti, M.L.
  • Brunner, J.
  • Modanese, G.

Abstract

The Bass model, which is an effective forecasting tool for innovation diffusion based on large collections of empirical data, assumes an homogeneous diffusion process. We introduce a network structure into this model and we investigate numerically the dynamics in the case of networks with link density P(k)=c/kγ, where k=1,…,N. The resulting curve of the total adoptions in time is qualitatively similar to the homogeneous Bass curve corresponding to a case with the same average number of connections. The peak of the adoptions, however, tends to occur earlier, particularly when γ and N are large (i.e., when there are few hubs with a large maximum number of connections). Most interestingly, the adoption curve of the hubs anticipates the total adoption curve in a predictable way, with peak times which can be, for instance when N=100, between 10% and 60% of the total adoptions peak. This may allow to monitor the hubs for forecasting purposes. We also consider the case of networks with assortative and disassortative correlations and a case of inhomogeneous advertising where the publicity terms are “targeted” on the hubs while maintaining their total cost constant.

Suggested Citation

  • Bertotti, M.L. & Brunner, J. & Modanese, G., 2016. "The Bass diffusion model on networks with correlations and inhomogeneous advertising," Chaos, Solitons & Fractals, Elsevier, vol. 90(C), pages 55-63.
  • Handle: RePEc:eee:chsofr:v:90:y:2016:i:c:p:55-63
    DOI: 10.1016/j.chaos.2016.02.039
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    References listed on IDEAS

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    1. Eric Abrahamson & Lori Rosenkopf, 1997. "Social Network Effects on the Extent of Innovation Diffusion: A Computer Simulation," Organization Science, INFORMS, vol. 8(3), pages 289-309, June.
    2. T. Di Matteo & T. Aste & M. Gallegati, 2005. "Innovation flow through social networks: productivity distribution in France and Italy," The European Physical Journal B: Condensed Matter and Complex Systems, Springer;EDP Sciences, vol. 47(3), pages 459-466, October.
    3. Edmund Phelps, 2015. "Mass Flourishing: How Grassroots Innovation Created Jobs, Challenge, and Change," Economics Books, Princeton University Press, edition 1, number 10058-2.
    4. Frank M. Bass, 1969. "A New Product Growth for Model Consumer Durables," Management Science, INFORMS, vol. 15(5), pages 215-227, January.
    5. Hazhir Rahmandad & John Sterman, 2008. "Heterogeneity and Network Structure in the Dynamics of Diffusion: Comparing Agent-Based and Differential Equation Models," Management Science, INFORMS, vol. 54(5), pages 998-1014, May.
    6. Meade, Nigel & Islam, Towhidul, 2006. "Modelling and forecasting the diffusion of innovation - A 25-year review," International Journal of Forecasting, Elsevier, vol. 22(3), pages 519-545.
    7. Duncan J. Watts & Peter Sheridan Dodds, 2007. "Influentials, Networks, and Public Opinion Formation," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 34(4), pages 441-458, May.
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    Cited by:

    1. Carbone, Anna & Jensen, Meiko & Sato, Aki-Hiro, 2016. "Challenges in data science: a complex systems perspective," Chaos, Solitons & Fractals, Elsevier, vol. 90(C), pages 1-7.
    2. Giovanni Modanese, 2023. "The Network Bass Model with Behavioral Compartments," Stats, MDPI, vol. 6(2), pages 1-13, March.
    3. Azadeh Ahkamiraad & Yong Wang, 2018. "An Agent-Based Model for Zip-Code Level Diffusion of Electric Vehicles and Electricity Consumption in New York City," Energies, MDPI, vol. 11(3), pages 1-17, March.
    4. M. L. Bertotti & G. Modanese, 2019. "The Bass Diffusion Model on Finite Barabasi-Albert Networks," Complexity, Hindawi, vol. 2019, pages 1-12, April.

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