Abstract
This paper studies diffusion of innovations, especially paying attention to that of services. Competing in a market, it is crucial for a company to get to know how its products or services spread among its customers. The Bass model is widely used to analyze the diffusion phenomena, but it lacks the ability to deal with heterogeneity of consumers that sometimes affects the trajectory of diffusion process. I then modify and extend the traditional innovation diffusion models, and propose the use of several agent-based models to consider the heterogeneity. Moreover, based on a complex network theory, I construct a model that takes into account the network structure of potential customers.
