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Skip to 0 minutes and 12 seconds Here we have a very large grid where the interpolation process will be demonstrated. I will just run a few steps. And as you can see, the upper left corner and the lower left corner, the first agents adopt the new product. And they share the information about the quality of the product, as explained just before. So let’s see how this continues. We see that the product spreads through society. We also see a lot of places where agents do not adopt the product because the quality is quite low. What is most fascinating is that we end with a very large, wide gap of agents not adopting.

Skip to 1 minute and 6 seconds This is a bit weird because you would expect that if the agents have distribution of preferences, that at least here would be some agents that would be interested in the product. So why don’t they adopt? Well, because there’s a borderline here of agents that think that the quality of the product is not sufficient. And remember, when the quality is too low to adopt, they will not further spread the information about the quality of the product. Hence, here we have a large zone of where the agents are not being informed about the existence of the product. This is a very interesting phenomenon that was being identified by the econophysicist.

Skip to 2 minutes and 0 seconds But obviously in our real social world, this is very rarely to happen, because we have very rich ways of communication.

Agent based model 3: Percolation of consumer products 2

This video shows a larger grid to demonstrate the percolation process.

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Decision Making in a Complex and Uncertain World

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