Agent-Based Simulation of Product Diffusion with Network Externality in a Heterogeneous Consumer Network

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In a product market with network externality, outperforming products are not always disseminated. Product markets are often modeled and examined by simulation to clarify product diffusion processes. In earlier work, where multiagent systems and complex networks were used to model the product market, consumer heterogeneity was not considered despite its influence on the product diffusion process. This paper introduces threshold models into multiagent-systembased simulation in complex networks to realize consumer heterogeneity. The feasibility of the proposed method is discussed using computer simulation results, and consumer heterogeneity and network structure affect product diffusion processes.