Influence of a network structure on the network effect in the communication service market

Makoto Uchida and Susumu Shirayama

Physica A: Statistical Mechanics and its Applications, 2008, vol. 387, issue 21, 5303-5310

Abstract: In this study, we analyze the network effect in a model of a personal communication market, by using a multi-agent based simulation approach. We introduce into the simulation model complex network structures as the interaction patterns of agents. With complex network models, we investigate the dynamics of a market in which two providers are competing. We also examine the structure of networks that affect the complex behavior of the market. By a series of simulations, we show that the structural properties of complex networks, such as the clustering coefficient and degree correlation, have a major influence on the dynamics of the market. We find that the network effect is increased if the interaction pattern of agents is characterized by a high clustering coefficient, or a positive degree correlation. We also discuss a suitable model of the interaction pattern for reproducing market dynamics in the real world, by performing simulations using real data of a social network.

Keywords: Complex networks; Network effect; Network dynamics; Artificial markets; Multi-agent based simulations (search for similar items in EconPapers)
Date: 2008
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Citations: View citations in EconPapers (12)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:phsmap:v:387:y:2008:i:21:p:5303-5310

DOI: 10.1016/j.physa.2008.06.012

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