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Linking consumer opinions with reservation prices in an agent-based model of innovation diffusion

Author

Listed:
  • Anna Kowalska-Pyzalska
  • Karolina Cwik
  • Arkadiusz Jedrzejewski
  • Katarzyna Sznajd-Weron

Abstract

We extend a recently developed agent-based model of innovation diffusion by linking the opinions of potential consumers with their market behavior via the concept of reservation prices. Through a dynamic mechanism that takes into account social influence, the agents in our model can both increase or decrease their product appraisal. Considering complete graph network structures and using mean-field treatment we find that the model can exhibit a plethora of scenarios, observed empirically but not attainable within the classical Bass model. We also show the existence of a critical market price above which the innovation cannot diffuse.

Suggested Citation

  • Anna Kowalska-Pyzalska & Karolina Cwik & Arkadiusz Jedrzejewski & Katarzyna Sznajd-Weron, 2016. "Linking consumer opinions with reservation prices in an agent-based model of innovation diffusion," HSC Research Reports HSC/16/03, Hugo Steinhaus Center, Wroclaw University of Science and Technology.
    • Handle: RePEc:wuu:wpaper:hsc1603
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    File URL: http://www.im.pwr.wroc.pl/~hugo/RePEc/wuu/wpaper/HSC_16_03.pdf
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    References listed on IDEAS

    as
    1. Anna, Petrenko, . "Мaркування готової продукції як складова частина інформаційного забезпечення маркетингової діяльності підприємств овочепродуктового підкомплексу," Agricultural and Resource Economics: International Scientific E-Journal, Agricultural and Resource Economics: International Scientific E-Journal, vol. 2(01).
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    Citations

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    Cited by:

    1. Weron, Tomasz & Kowalska-Pyzalska, Anna & Weron, Rafał, 2018. "The role of educational trainings in the diffusion of smart metering platforms: An agent-based modeling approach," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 505(C), pages 591-600.
    2. Kowalska-Pyzalska, Anna, 2018. "What makes consumers adopt to innovative energy services in the energy market? A review of incentives and barriers," Renewable and Sustainable Energy Reviews, Elsevier, vol. 82(P3), pages 3570-3581.
    3. Jędrzejewski, Arkadiusz & Sznajd-Weron, Katarzyna, 2018. "Impact of memory on opinion dynamics," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 505(C), pages 306-315.

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    More about this item

    Keywords

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    JEL classification:

    • C63 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computational Techniques
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation

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