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Social structure and consumption: on the diffusion of consumer good innovation

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  • Andreas Reinstaller
  • Bulat Sanditov

Abstract

This paper presents a simple evolutionary model to study the diffusion patterns of product innovations for consumer goods. Following a Veblenian theme, we interpret consumption as a social activity constrained by social norms and class structure. Societies that allow for more behavioral variety will experience faster adoption of new consumer goods. We also find that the speed of diffusion as well as the saturation levels reached depend greatly on the structure of a society. Combining these two effects, we conclude that a social structure displaying behavioral variety and an even class structure fares better than any other social set-up in terms of the speed of adoption of product innovations and product variety. Copyright Springer-Verlag Berlin/Heidelberg 2005

Suggested Citation

  • Andreas Reinstaller & Bulat Sanditov, 2005. "Social structure and consumption: on the diffusion of consumer good innovation," Journal of Evolutionary Economics, Springer, vol. 15(5), pages 505-531, November.
    • Handle: RePEc:spr:joevec:v:15:y:2005:i:5:p:505-531
    DOI: 10.1007/s00191-005-0265-9
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    Citations

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    Cited by:

    1. Volgger, Michael & Taplin, Ross & Pforr, Christof, 2019. "The evolution of ‘Airbnb-tourism’: Demand-side dynamics around international use of peer-to-peer accommodation in Australia," Annals of Tourism Research, Elsevier, vol. 75(C), pages 322-337.
    2. João Bernardino & Tanya Araújo, 2013. "On positional consumption and technological innovation: an agent-based model," Journal of Evolutionary Economics, Springer, vol. 23(5), pages 1047-1071, November.
    3. Nathalie Lazaric & Vanessa Oltra, 2012. "Sustainable Consumption in an Evolutionary Framework: How to Foster Behavioural Change?," Chapters, in: Blandine Laperche & Nadine Levratto & Dimitri Uzunidis (ed.), Crisis, Innovation and Sustainable Development, chapter 3, Edward Elgar Publishing.
    4. Jakob Kapeller & Bernhard Schütz & Stefan Steinerberger, 2013. "The impossibility of rational consumer choice," Journal of Evolutionary Economics, Springer, vol. 23(1), pages 39-60, January.
    5. Curatola, Giuliano, 2017. "Portfolio choice and asset prices when preferences are interdependent," Journal of Economic Behavior & Organization, Elsevier, vol. 140(C), pages 197-223.
    6. Iuliana Petronela Gardan & Daniel Adrian Gardan & Gheorghe Epuran, 2015. "Social Factors Influence From The Perspective Of Dental Healthcare Services Consumers’ Behavior," Studies and Scientific Researches. Economics Edition, "Vasile Alecsandri" University of Bacau, Faculty of Economic Sciences, issue 22.
    7. Andreas Reinstaller, 2013. "An Evolutionary View on Social Innovation and the Process of Economic Change. WWWforEurope Working Paper No. 43," WIFO Studies, WIFO, number 47018, February.

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