Modelling diffusion of innovations in a social network

TL;DR

This paper introduces a simple model for innovation diffusion in social networks, highlighting a critical point that optimizes technological growth and exhibits power-law behavior in avalanches.

Contribution

It presents a novel diffusion model incorporating upgrading costs and identifies a critical point that enhances technological growth in social networks.

Findings

Identification of a critical point with power-law avalanche behavior

Analytical results for globally coupled agents

Optimization of technological growth at the critical point

Abstract

A new simple model of diffusion of innovations in a social network with upgrading costs is introduced. Agents are characterized by a single real variable, their technological level. According to local information agents decide whether to upgrade their level or not balancing their possible benefit with the upgrading cost. A critical point where technological avalanches display a power-law behavior is also found. This critical point is characterized by a macroscopic observable that turns out to optimize technological growth in the stationary state. Analytical results supporting our findings are found for the globally coupled case.