Social Dynamics

Routing Summary

This topic covers social interaction mechanisms in agent-based consumer models. Contains 3 sub-topics and 6 total notes.

Sub-topics

  • Word of Mouth — COVERS: WOM propagation mechanisms (positive/negative), opinion leader definitions (exogenous vs emergent), influence amplification, two-step flow of communication
  • Networks and Diffusion — COVERS: preference-based network formation, spatial perception fields, product adoption value function, S-curve dynamics, network topology effects (random vs clustered), two-wave adoption
  • Market Dynamics — COVERS: brand lock-in from initial dominance, cyclic market share competition, imitation cascade mechanism, age-dependent attitude convergence

Cross-Cutting Concepts

  • Positive feedback loops: WOM creates positive feedback (more users more WOM more users) that drives both adoption S-curves (Product Adoption and Diffusion Models) and lock-in effects (Market Share Equilibrium and Lock-In)
  • Local vs global information: All three sub-topics depend on agents using local rather than global information — local WOM, local network neighbors, local market observations

Sources