Abstract
There is a phenomenon the blue-chip companies that have top share of the market are not able to respond to changes in the standard of value by disruptive technology with inferior performance. As a result, the company will lose the advantage in the market. This phenomenon is the Innovator's Dilemma. The causes are “Value Network" and “the uncertainty of preference for product features that consumers have". But the quantitative verification of the hypothesis is insufficient.
In this study, I reproduce the process of the Innovator's Dilemma by using Agent-based model that describe individual level interactions. Moreover, I validate the hypothesis about the cause and consider the measures the blue-chip company does not lose the advantage in the market.
