Resource title

A Percolation-Based Model Explaining Delayed Take-Off in New-Product Diffusion

Resource image

image for OpenScout resource :: A Percolation-Based Model Explaining Delayed Take-Off in New-Product Diffusion

Resource description

A model of new-product diffusion is proposed in which a site-percolation dynamics represents socially-driven diffusion of knowledge about the product?s characteristics in a population of potential buyers. A consumer buys the new product if her valuation of it is not below the price of the product announced by the firm in a given period. Our model attributes the empirical finding of a delayed ?take-off? of a new product to a drift of the percolation dynamics from a non-percolating regime to a percolating regime. This drift is caused by learning-effects lowering the price of the product, or by network-effects increasing its valuation by consumers, with an increasing number of buyers.

Resource author

Martin Hohnisch, Sabine Pittnauer, Dietrich Stauffer

Resource publisher

Resource publish date

Resource language

eng

Resource content type

text/html

Resource resource URL

http://hdl.handle.net/10419/22954

Resource license

Adapt according to the presented license agreement and reference the original author.