Information Channel Effect in Music CD Market: An Agent-based Approach to Winner-Take-All

Abstract

Does increasing the number of information channels in the information network society diversify or concentrate consumption variety? To answer this question, we studied how increasing the number of information channels affects consumption behavior in our society. We develop a model of a winner-take-all phenomenon by an information channel effect. An information channel is defined as an information communication medium, and channel quantity is defined as the amount of information it can exchange between individuals.

From the simulation results we obtained, we conclude that the ongoing development of information channels, i.e., the development of interactive information networks, tends to strengthen winner-take-all phenomena. We propose a scenario under which the society branches off from variety consumption or concentrated consumption by interactive effects between the number of information channels and the composition of consumers.