Information feedback mechanism and market dominance in a percolation model of eco-innovation diffusion
Description
New technologies often enter the market at a competitive disadvantage. While they may seem to promise future advantages such as lower costs, environmental friendliness, or higher performance, initially they may be significantly more expensive than incumbent technologies or face teething problems. The adoption of a new technology may also be affected by consumers’ uncertainty on its performance. In such an environment, information feedbacks are likely to arise and could allow a certain technology to be the dominant one in the market. Drawing on recent percolation models of diffusion that combine the contagion aspect of agents distributed on a network, with the heterogeneity of agent characteristics, we develop a complex-dynamics model of new technology diffusion. By using a multinomial decision mechanism to model each adopter’s choice on a portfolio of new available technologies we show the effect of information feedbacks on market dominance. Using agent-based simulations we explore when a limited subsidy policy, combined with a power-law learning curve for the price as a function of the cumulative number of adopters, can trigger a self-sustained diffusion of a certain technology.
| Slides | |
| 0:00 | Information feedback mechanism and market dominance in a percolation model of innovation diffusion. |
| 0:39 | Empirical findings |
| 1:35 | Theoretical findings |
| 2:00 | Models of the diffusion of stand-alone technologies |
| 3:45 | Models of multiple technologies diffusion |
| 5:43 | Diffusion Policy |
| 7:53 | The Model |
| 9:13 | The rules of the model |
| 9:57 | The definition of neighbourhood |
| 10:36 | Equations of the model |
| 12:46 | The wheel mechanism |
| 15:54 | Set of parameters |
| 17:56 | Diffusion versus price |
| 19:20 | Equations of the model |
| 19:26 | Diffusion versus price |
| 19:48 | Diffusion over time |
| 20:38 | Learning economies |
| 21:12 | Diffusion versus alpha |
| 22:16 | Policy Implications |
| 23:38 | Diffusion versus s |
| 25:21 | Preliminary Conclusions |
| 26:52 | Further Research |
| 28:19 | - Questions |
Lecture rating
| People found this lecture: | ||
| Worth seeing | ||
| because it is: | ||
| Valuable and informative | ||
| Well presented | ||
| Easily understandable | ||
| Acceptably recorded | ||
| You need to login to cast your vote. | ||
Report a problem or upload files
If you have found a problem with this lecture or would like to send us extra material, articles, exercises, etc., please use our ticket system to describe your request and upload the data.Enter your e-mail into the 'Cc' field, and we will keep you updated with your request's status.
Related content
SEE ALSO:
Link this page
Would you like to put a link to this lecture on your homepage?Go ahead! Copy the HTML snippet !


