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How do Interpersonal Influence Externalities Affect the Diffusion of Innovations

Author

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  • Deroian, F.

Abstract

Why do innovations need delay to diffuse, or why do they fail? This paper provides a possbile explanation. Considering a population of potential adopters of a technology, we set up a model composed of interacting agents. Interaction is conceived as influence effects and the network of interpersonal influences is learning step by step. The model entails the formation of a structure of the relational influence that leads, after a period of active latency, to an endogenous bifurcation in the aggregate dynamics of the individual opinions.

Suggested Citation

  • Deroian, F., 1999. "How do Interpersonal Influence Externalities Affect the Diffusion of Innovations," G.R.E.Q.A.M. 99a50, Universite Aix-Marseille III.
    • Handle: RePEc:fth:aixmeq:99a50
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    More about this item

    Keywords

    SOCIETY ; LEARNING ; CONSUMPTION;
    All these keywords.

    JEL classification:

    • A12 - General Economics and Teaching - - General Economics - - - Relation of Economics to Other Disciplines
    • A14 - General Economics and Teaching - - General Economics - - - Sociology of Economics
    • D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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