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An agent based multi-optional model for the diffusion of innovations

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  • Laciana, Carlos E.
  • Oteiza-Aguirre, Nicolás

Abstract

We propose a model for the diffusion of several products competing in a common market based on the generalization of the Ising model of statistical mechanics (Potts model). Using an agent based implementation we analyze two problems: (i) a three options case, i.e. to adopt a product A, a product B, or non-adoption and (ii) a four option case, i.e. the adoption of product A, product B, both, or none. In the first case we analyze a launching strategy for one of the two products, which delays its launching with the objective of competing with improvements. Market shares reached by each product are then estimated at market saturation. Finally, simulations are carried out with varying degrees of social network topology, uncertainty, and population homogeneity.

Suggested Citation

  • Laciana, Carlos E. & Oteiza-Aguirre, Nicolás, 2014. "An agent based multi-optional model for the diffusion of innovations," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 394(C), pages 254-265.
    • Handle: RePEc:eee:phsmap:v:394:y:2014:i:c:p:254-265
    DOI: 10.1016/j.physa.2013.09.046
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