Compartmental market models in the digital economy—extension of the Bass model to complex economic systems

Bibliographic Data

ID21519502
AuthorsHarald Øverby (0000-0002-4911-4311, BI Norwegian Business School, corresponding author), Jan Arild Audestad, Gabriel Andy Szalkowski (0000-0001-9062-4551)
Year2023
Volume47
Issue1
Pages102441
Publication date2023-02-01
Open AccessYes
TypeARTICLE
VenueTelecommunications Policy (JOURNAL)
Journal identifiersISSN: 0308-5961 • E-ISSN: 1879-3258
PublisherElsevier BV (PUBLISHER)
DOI10.1016/j.telpol.2022.102441
OpenAlexW4296901754
LanguageEN
Citations received2
References cited19

Compartmental models are widely used in epidemiology, engineering, and physics to describe the temporal behavior of complex systems. This paper\npresents how compartmental models may be applied to the digital economy—more specifically, how the Bass model can be extended to more\ncomplex economics systems such as markets with customer churning, competition, multisided platforms, and online games. It is demonstrated that it\nis straightforward to establish the equations describing the various economic systems under study, however, the equations are often too complex to\nbe solved analytically in the general case. Though the paper presents simple and idealized cases, the solutions may, nevertheless, uncover important\nstrategic aspects that otherwise may be hidden by complexity in the general case, for example, the reasons for slow initial market growth. The paper\nalso discusses how the developed models may be used to evaluate digital economic market evolution and business policy

Biology · Economic model · Economic system · Economics · Fishery · Microeconomics · Complex Systems and Time Series Analysis · Computer Science · Innovation Diffusion and Forecasting · Opinion Dynamics and Social Influence

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