A MODEL FOR BRAND COMPETITION WITHIN A SOCIAL NETWORK
An agent-based model was built representing an economic environment in which m brands are competing for a product market. These agents represent companies that interact within a social network in which a certain agent persuades others to update or shift their brands; the brands of the products they are using. Decision rules were established that caused each agent to react according to the economic benefits it would receive;they updated/shifted only if it was beneficial. Each agent can have only one of the m possible brands,and she can interact with its two nearest neighbors and another set of agents which are chosen according to a particular set of rules in the network topology. An absorbing state was always reached in which a single brand monopolized the network (known as condensation). The condensation time varied as a function of model parameters is studied including an analysis of brand competition using different networks.
social networks condensation economic models power law econophysics