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Live fast, die young? Investigating product life spans and obsolescence in an agent-based model

Author

Listed:
  • Eric Brouillat

    (GREThA - Groupe de Recherche en Economie Théorique et Appliquée - UB - Université de Bordeaux - CNRS - Centre National de la Recherche Scientifique)

Abstract

his article presents an agent-based simulation model that explores the dynamics of product life spans. The objective of this modeling exercise is to investigate the interplay between technological change and product life span in extended industrial dynamics. Change in product characteristics is driven by an endogenous stochastic process relying on the interplays between heterogeneous consumers and firms. Special attention is paid to demand-side modeling, which allows analyzing more thoroughly how decisions of bounded rational consumers affect the dynamics of the system. Although most existing models on product life span investigate durable goods monopolists, our study highlights the notion that diversity matters. Diversity of supply and demand in a bounded rationality context can push firms to market products with longer life spans, but their diffusion is restrained by the sensitivity of consumers to product obsolescence and their willingness to pay for longer-lasting products. The dynamics of consumer preferences influenced by firm marketing activities tend to maintain this situation which contributes to locking the market into short product-life trends. Unlocking the system requires changes in consumer behavior and better information about product life span and cost per use for consumers.

Suggested Citation

  • Eric Brouillat, 2014. "Live fast, die young? Investigating product life spans and obsolescence in an agent-based model," Post-Print hal-03124839, HAL.
    • Handle: RePEc:hal:journl:hal-03124839
    DOI: 10.1007/s00191-014-0385-1
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    Cited by:

    1. is not listed on IDEAS
    2. Bölen, Mehmet Cem, 2020. "From traditional wristwatch to smartwatch: Understanding the relationship between innovation attributes, switching costs and consumers' switching intention," Technology in Society, Elsevier, vol. 63(C).
    3. Braganza, Oliver, 2022. "Market paternalism: Do people really want to be nudged towards consumption?," ifso working paper series 23, University of Duisburg-Essen, Institute for Socioeconomics (ifso).
    4. Oliver Braganza & Jakob Kapeller, 2025. "Reappraising consumption nudging—on liberty in the age of climate catastrophe," Humanities and Social Sciences Communications, Palgrave Macmillan, vol. 12(1), pages 1-13, December.
    5. Christophe Feder & Beniamino Callegari & David Collste, 2024. "The system dynamics approach for a global evolutionary analysis of sustainable development," Journal of Evolutionary Economics, Springer, vol. 34(2), pages 351-374, April.
    6. Florian Chávez-Juárez, 2017. "On the Role of Agent-based Modeling in the Theory of Development Economics," Review of Development Economics, Wiley Blackwell, vol. 21(3), pages 713-730, August.

    More about this item

    Keywords

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    JEL classification:

    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory
    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • Q57 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Ecological Economics

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