An Agent-Based Model of Product Competition: Network Structure and Coexistence Under Different Information Regimes

20 Pages Posted: 11 May 2010

See all articles by Giovanni Pegoretti

Giovanni Pegoretti

University of Trento - Department of Economics

Francesco Rentocchini

Southampton Business School, University of Southampton

Giuseppe Vittucci Marzetti

University of Milano-Bicocca - Department of Sociology and Social Research

Date Written: April 1, 2010

Abstract

The paper analyzes how the structure of social networks affects product diffusion and competition under different information regimes. Diffusion is modeled as the result of idiosyncratic adoption thresholds, local network effects, and information diffusion broadcasting and word-of mouth by previous adopters). A high social cohesion tends to decrease the probability of one product cornering the market. However, in small-world networks, the higher speed of diffusion produced by the low average distance increases such probability.

Keywords: Agent-based model, innovation diffusion, network effects, social networks, small-world

JEL Classification: D83, D85, M31, O33

Suggested Citation

Pegoretti, Giovanni and Rentocchini, Francesco and Vittucci Marzetti, Giuseppe, An Agent-Based Model of Product Competition: Network Structure and Coexistence Under Different Information Regimes (April 1, 2010). Available at SSRN: https://ssrn.com/abstract=1599468 or http://dx.doi.org/10.2139/ssrn.1599468

Giovanni Pegoretti

University of Trento - Department of Economics ( email )

Via Inama 5
Trento, I-38100
Italy

Francesco Rentocchini (Contact Author)

Southampton Business School, University of Southampton ( email )

University Rd.
Southampton SO17 1BJ, Hampshire SO17 1LP
United Kingdom

Giuseppe Vittucci Marzetti

University of Milano-Bicocca - Department of Sociology and Social Research ( email )

via Bicocca degli Arcimboldi, 8
Milano, MI 20126
Italy

HOME PAGE: http://https://www.unimib.it/giuseppe-vittucci-marzetti

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