Linking Consumer Opinions with Reservation Prices in an Agent-Based Model of Innovation Diffusion

• Authors: A. Kowalska-Pyzalska , K. Ćwik , A. Jędrzejewski , K. Sznajd-Weron
• Languages of publication: EN

Abstracts

EN

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.

Keywords

EN

89.65.Gh; 87.23.Ge

Discipline

• 87.23.Ge: Dynamics of social systems
• 89.65.Gh: Economics; econophysics, financial markets, business and management(for economic issues regarding production and use of renewable energy, see 88.05.Lg)

• Publisher: Institute of Physics, Polish Academy of Sciences
• Journal: Acta Physica Polonica A
• Year: 2016
• Volume: 129
• Issue: 5
• Pages: 1055-1059

Dates

published

2016-05

Contributors

author

A. Kowalska-Pyzalska

• Department of Operations Research, Wrocław University of Technology, Wrocław, Poland

author

K. Ćwik

• Department of Operations Research, Wrocław University of Technology, Wrocław, Poland

author

A. Jędrzejewski

• Department of Operations Research, Wrocław University of Technology, Wrocław, Poland

author

K. Sznajd-Weron

• Department of Theoretical Physics, Wrocław University of Technology, Wrocław, Poland

References

• [1] E.M. Rogers, Diffusion of Innovations, The Free Press, New York, NY 2003
• [2] J. Goldenberg, B. Libai, E. Muller, Int. J. Res. Market. 27, 4 (2010), doi: 10.1016/j.ijresmar.2009.06.006
• [3] R. Peres, E. Muller, V. Mahajan, Int. J. Res. Market. 27, 91 (2010), doi: 10.1016/j.ijresmar.2009.12.012
• [4] P. Przybyła, K. Sznajd-Weron, R. Weron, Adv. Complex Syst. 17, 1450004 (2014), doi: 10.1142/S0219525914500040
• [5] A. Kowalska-Pyzalska, K. Maciejowska, K. Suszczyński, K. Sznajd-Weron, R. Weron, Energy Policy 71, 164 (2014), doi: 10.1016/j.enpol.2014.04.021
• [6] H.R. Varian, Intermediate Microeconomics. A Modern Approach, 8th ed., W.W. Norton and Co., New York, NY 2010
• [7] G. Deffuant, S. Huet, F. Amblar, Am. J. Sociol. 110, 1041 (2005), doi: 10.1086/430220
• [8] J. Goldenberg, B. Libai, E. Muller, Market. Lett. 12, 211 (2001), doi: 10.1023/A:1011122126881
• [9] E. Kiesling, M. Güntherand, C. Stummer, L.M. Wakolbinger, Centr. Europ. J. Operat. Res. 20, 183 (2012), doi: 10.1007/s10100-011-0210-y
• [10] K. Maciejowska, A. Jędrzejewski, A. Kowalska-Pyzalska, R. Weron, Acta Phys. Pol. A 129, 1045 (2016), doi: 10.12693/APhysPolA.129.1045
• [11] P. Nyczka, K. Sznajd-Weron, J. Statist. Phys. 151, 174 (2013), doi: 10.1007/s10955-013-0701-4
• [12] P.R. Nail, S.I. Di Domenico, G. MacDonald, Rev. Gen. Psychol. 17, 1 (2013), doi: 10.1037/a0030997
• [13] P.R. Nail, K. Sznajd-Weron, Acta Phys. Pol. A 129, 1050 (2016), doi: 10.12693/APhysPolA.129.1050
• [14] K. Byrka, A. Jędrzejewski, K. Sznajd-Weron, R. Weron, HSC Research Report 15/10, 2015 http://ideas.repec.org/p/wuu/wpaper/hsc1510.html
• [15] K. Sznajd-Weron, J. Szwabiński, R. Weron, PLoS ONE 9, 1 (2014), doi: 10.1371/journal.pone.0112203
• [16] F.G. Kaiser, K. Byrka, T. Hartig, Personal. Soc. Psychol. Rev. 14, 351 (2010), doi: 10.1177/1088868310366452
• [17] R. Bond, Group Process. Intergroup Relat. 8, 331 (2005), doi: 10.1177/1368430205056464
• [18] R. Barry Ruback, R.T. Collins, S. Koon-Magnin, Weina Ge, L. Bonkiewicz, C.E. Lutz, Environm. Behav. 45, 239 (2013), doi: 10.1177/0013916511412589
• [19] M. Günther, C. Stummer, L.M. Wakolbinger, M. Wildpaner, J. Operat. Res. Soc. 62, 12 (2011), doi: 10.1057/jors.2009.170
• [20] F.M. Bass, Manag. Sci. 15, 215 (1969), doi: 10.1287/mnsc.15.5.215
• [21] C.H. Weiss, J. Poncela-Casasnovas, J.I. Glaser, A.R. Pah, S.D. Persell, D.W. Baker, R.G. Wunderink, L.A. Nunes Amaral, Phys. Rev. X 4, 041008 (2014), doi: 10.1103/PhysRevX.4.041008

Identifiers

DOI

10.12693/APhysPolA.129.1055