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Diffusion of Shared Goods in Consumer Coalitions. An Agent-Based Model

Francesco Pasimeni and Tommaso Ciarli

SPRU Working Paper Series from SPRU - Science Policy Research Unit, University of Sussex Business School

Abstract: This paper focuses on the process of coalition formation conditioning the common decision to adopt a shared good, which cannot be afforded by an average single consumer and whose use cannot be exhausted by any single consumer. An agent based model is developed to study the interplay between these two processes: coalition formation and diffusion of shared goods. Coalition formation is modelled in an evolutionary game theoretic setting, while adoption uses elements from both the Bass and the threshold models. Coalitions formation sets the conditions for adoption, while diffusion influences the consequent formation of coalitions. Results show that both coalitions and diffusion are subject to network effects and have an impact on the information flow though the population of consumers. Large coalitions are preferred over small ones since individual cost is lower, although it increases if higher quantities are purchased collectively. The paper concludes by connecting the model conceptualisation to the on-going discussion of diffusion of sustainable goods, discussing related policy implications.

Keywords: Coalition formation; diffusion; shared goods; agent-based model (search for similar items in EconPapers)
JEL-codes: D16 D71 E27 O33 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cdm, nep-cmp, nep-hme and nep-mac
Date: 2018-12
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Persistent link: https://EconPapers.repec.org/RePEc:sru:ssewps:2018-24

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