A Punctuated-Equilibrium Model of Technology Diffusion

• Published in: Management science Vol. 45; no. 2; pp. 160 - 177
• Main Authors: Loch, Christoph H, Huberman, Bernardo A
• Format: Journal Article
• Language: English
• Published: Linthicum, MD INFORMS 01.02.1999; Institute for Operations Research and the Management Sciences
• Series: Management Science
• Subjects: Applied sciences; Business innovation; dynamic systems; Emerging technology; Equilibrium; Equilibrium models; Evolution; evolutionary models; Exact sciences and technology; Firm modelling; Incumbents; Innovation; Innovation diffusion; Innovations; Management science; Market positioning; Mathematical models; Modeling; network externalities; New technology; Operational research and scientific management; Operational research. Management science; path dependence; Performance technology; Positive externalities; Product development; punctuated equilibria; Punctuation; Simulation; Studies; Technological change; Technological innovation; Technology; technology diffusion; Simulation; Diffusion; Performance; Technology

We present an evolutionary model of technology diffusion in which an old and a new technology are available, both of which improve their performance incrementally over time. Technology adopters make repeated choices between the established and the new technology based on their perceived performance,...