Competitive Dynamics between Physical and Virtual Markets in Multiplex Networks

Abstract

Despite having interesting results of analyzing the adoption of e-commerce using social networks, diffusion does not occur in a single-layered network. There is sufficient evidence that game theory, complex networks and Theory of Planned Behavior are suitable frameworks to represent some part of the dynamics of innovation diffusion. However, it is necessary to integrate this methodological triplet to accept that an emergent behavior is generated by more real causes. We analyzed the effect of the multiplex topology when people decide to make transactions through virtual or physical channels, and found that connectivity is a key issue when managing the agent’s behavior. This also translates into greater coordination in the agents' decisions. When a multiplex is formed by at least one network with very efficient information flow, this network will govern the dynamics affecting channel selection and will also reduce transaction uncertainty. In addition, we found that investing in connectivity is worthwhile when trust is low in at least one channel; otherwise, it does not have enough impact to increase current transactions. This article makes a significant methodological contribution by showing a new way to analyze the impact of multiplex social networks, as well as a practical contribution by evidencing the effects of the structures on both intentions and actions.