Imitation and the diffusion of innovation in e-commerce

Mario Eboli

No 237, Computing in Economics and Finance 2001 from Society for Computational Economics

Abstract: This paper presents a model of adoption and diffusion of innovations that concern the technology of e-commerce. First, a model of optimal adoption of e-commerce innovation is presented. In this model web companies are assumed to behave in an imitative way: facing an innovation of uncertain profitability, they perceive the adoption decisions of other e-traders as favourable signals. This behaviour generates a network of cross-monitoring companies that is here modeled as a directional graph. Finally, the paper presents an algorithm that describes and computes the propagation of innovation in such a graph.

Keywords: e-commerce; innovation; graph theory; networks. (search for similar items in EconPapers)
JEL-codes: C45 C63 O31 (search for similar items in EconPapers)
Date: 2001-04-01
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Persistent link: https://EconPapers.repec.org/RePEc:sce:scecf1:237

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