Competitive Innovation Diffusion in Small-World Network: Agent-Based Modeling and Simulation

Abstract

The main purpose of this paper is to analyze the dynamic process when two competitive innovations diffuse simultane- ously in the small world network. To illustrate the micro diffusion process, an agent-based modeling and simulation method is applied. In the agent based model, there are two competitive innovations. Agents make decisions to adopt one of the innovations according to the utility value. The sensitivity of the parameters of the utility function is analyzed. The result indicates that in the early stage and the late stage the advertisement strategy is better; while in the middle stage the word-of-mouth will be better.