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Imitation and the diffusion of innovation in e-commerce

Author

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  • 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.

Suggested Citation

  • Mario Eboli, 2001. "Imitation and the diffusion of innovation in e-commerce," Computing in Economics and Finance 2001 237, Society for Computational Economics.
  • Handle: RePEc:sce:scecf1:237
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    More about this item

    Keywords

    e-commerce; innovation; graph theory; networks.;

    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; Programming Models; Mathematical and Simulation Modeling - - - Computational Techniques
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives

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