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New Product Adoption in a Friendship Network using Spatial Lag Model

Author

Listed:
  • Fang, Di
  • Morrison, Richard

Abstract

In this study we address the following question: does friendship facilitate the adoption of a risk inherent new product? We did a validation study with a previously recorded friendship network and simulated scenario of a new energy drink. We learn that spill over effect for such a friendship network is significantly more powerful than product attributes or social demographic attributes. We conducted a spatial two-stage least square analysis with simulated data.

Suggested Citation

  • Fang, Di & Morrison, Richard, 2014. "New Product Adoption in a Friendship Network using Spatial Lag Model," 2014 AAEA/EAAE/CAES Joint Symposium: Social Networks, Social Media and the Economics of Food, May 29-30, 2014, Montreal, Canada 166091, Agricultural and Applied Economics Association.
  • Handle: RePEc:ags:aajs14:166091
    DOI: 10.22004/ag.econ.166091
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