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The diffusion of goods with multiple characteristics and price premiums: an agent-based model

Lopez Merino, Pedro Guillermo; Rouchier, Juliette (2022), The diffusion of goods with multiple characteristics and price premiums: an agent-based model, Applied Network Science, 7, 11, p. 1-22. 10.1007/s41109-022-00447-1

Type
Article accepté pour publication ou publié
External document link
https://hal.inrae.fr/hal-03612172
Date
2022
Journal name
Applied Network Science
Volume
7
Number
11
Publisher
Springer
Pages
1-22
Publication identifier
10.1007/s41109-022-00447-1
Metadata
Show full item record
Author(s)
Lopez Merino, Pedro Guillermo
Laboratoire d'analyse et modélisation de systèmes pour l'aide à la décision [LAMSADE]
Unité de recherche d'Écodéveloppement [ECODEVELOPPEMENT]
Agence Transit Ecol ADEME
Rouchier, Juliette cc
Laboratoire d'analyse et modélisation de systèmes pour l'aide à la décision [LAMSADE]
Aix-Marseille Sciences Economiques [AMSE]
Abstract (EN)
According to innovation diffusion theories, the adoption of a new product is the result of a dynamic process whereby individuals become likelier to adopt as others do. Agent-based modelling has emerged as a useful technique to model and study processes of innovation diffusion within artificial societies, as it allows to easily programme and simulate the interaction of multiple agents among them and with their environment. Despite a large body of literature dealing with innovation of diffusions, including the use of agent-based modelling, there has been little to no consideration of two elements that are important features of consumption: the presence of multiple characteristics of goods, and that of price-premiums on the presence of added characteristics. We propose an agent-based model of the diffusion of such goods, and study its emerging properties when compared to standard ones. Our goal is to try and understand how social interaction affects the consumption of goods that are complex rather than uni-dimensional, and whose prices depend on the number of dimensions (characteristics) that are present. Testing the model for different parameters shows that as goods become more complex, social interaction becomes an increasingly important explanatory variable for purchases. This opens up interesting avenues of discussion for those seeking to bring together innovation diffusion theories and goods’ complexity, and can be linked with a number of issues in the social and sustainability sciences.
Subjects / Keywords
Agent-based modelling, Innovation diffusion, Lancaster goods, Threshold models, Price premiums
JEL
D1 - Household Behavior and Family Economics
D8 - Information, Knowledge, and Uncertainty

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