Template-Type: ReDIF-Paper 1.0
Title: A Percolation-Based Model Explaining Delayed Take-Off in New-Product Diffusion
Author-Name: Martin Hohnisch
Author-Name: Sabine Pittnauer
Author-Name: Dietrich Stauffer
Author-Email: Sabine.Pittnauer@uni-bonn.de
Classification-JEL: C15, L15
Keywords: new-product diffusion, innovation adoption, spatial stochastic processes,
	percolation
Abstract: 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.
Note: 
Length: 18
Creation-Date: 2006-04	
Revision-Date: 
File-URL: http://www.wiwi.uni-bonn.de/bgsepapers/bonedp/bgse9_2006.pdf
File-Format: application/pdf
Handle: RePEc:bon:bonedp:bgse9_2006