An agent-based model of product competition: network structure and coexistence under different information regimes
The paper analyzes how the structure of interaction networks affects the diffusion patterns and market shares of different products in case of local network externalities and imperfect information. The diffusion of the different products/technologies in the market is modelled as the result of two (only partly) interrelated dynamics: i) the interaction between idiosyncratic individual thresholds and local network externalities; ii) the diffusion of the information about the product (via broadcast diffusion and word-of-mouth). The average clustering coefficient affects the overall outcome and the actual possibility that one product corners the market. Moreover, in case of small-world networks, despite the high clustering coefficient which increases the probability of an outcome with coexistence, the increase in the speed of diffusion impinges on the actual realization of such an outcome in case of sequential entry of the different technologies and/or imperfect information.
|Date of creation:||2009|
|Date of revision:|
|Contact details of provider:|| Postal: Via Inama 5, 38100 Trento|
Web page: http://www.openloc.eu/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- López-Pintado, Dunia, 2008.
"Diffusion in complex social networks,"
Games and Economic Behavior,
Elsevier, vol. 62(2), pages 573-590, March.
When requesting a correction, please mention this item's handle: RePEc:trn:utwpol:0916. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Francesco Rentocchini)The email address of this maintainer does not seem to be valid anymore. Please ask Francesco Rentocchini to update the entry or send us the correct email address
If references are entirely missing, you can add them using this form.