Linking Consumer Opinions with Reservation Prices in an Agent-Based Model of Innovation Diffusion
A. Kowalska-Pyzalskaa, K. Ćwik a, A. Jędrzejewski a and K. Sznajd-Weron b
aDepartment of Operations Research, Wrocław University of Technology, Wrocław, Poland
bDepartment of Theoretical Physics, Wrocław University of Technology, Wrocław, Poland
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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.

DOI: 10.12693/APhysPolA.129.1055
PACS numbers: 89.65.Gh, 87.23.Ge