Prof. Koen Frenken, Utrecht University
We present a diffusion model for an innovative product or idea in a social network. Diffusion is described as a percolation process, based on a distribution of reservation prices of agents. There is a threshold value of a product's price (or reversely, of the quality of an idea) that defines a phase transition from a diffusion to a no-diffusion regime. The efficiency of social networks in spreading innovations, then, can be expressed in terms of consumer surplus. We also present results for different types of network topologies, different distribution of preferences and for different levels of social pressure exerted by neighbors in the social network.
About the speaker
Koen Frenken is Full Professor in Innovation Studies at the Copernicus Institute of Sustainable Development, Utrecht University and Guest Professor at CIRCLE, Lund University. Theoretical interests include evolutionary economics, complexity theory and network science. He mainly works on the science and technology, economic geography, innovation policy and sharing economy.
Venue: Conference Rooom
Date: 17 October 2014
Time: 15:00 - 16:00