Agent-based Diffusion Model and Business Game Based on Snowball Research and Network Analysis

Abstract

We presented that an agent-based diffusion model that considers word-of-mouth effect used for a business game can contribute to planning competition strategies in innovation diffusion process. Firstly, to clarify word-of-mouth behavior of consumers on a social network, we implemented a snowball sampling research whose subjects were Edy and mixi. Then, we designed an agent-based diffusion model for multiple competing products and a business game based on this model. This game can compare the effect of promotion methods of different types of products: Edy-type and mixi-type. Preliminary analyses for electronic money and SNS markets show that the optimal strategies depend on the properties and the timing of market entry. In an actual strategy planning situation, valuable knowledge is acquired if multiple players play this game and exchange their views.