In this paper, the authors study the all-pervading influence of social networks on consumers' inclination towards on-line shopping, which in turn affects the very functioning of certain traditional ("brick-and-mortar") markets. More specifically, they study a model of influence in social networks to show the change in consumer behavior patterns using an agent based interaction model. Agent-based modeling and simulation is a new approach to modeling system; that comprise interacting autonomous agents. Using agent-based models, they create a virtual population including several hundreds of artificial consumers to study the rate of adoption of on-line shopping by consumers. In conventional modeling of the diffusion process, there is no way to describe how the cognitive aspects of agents as well as diversity of the agents' decision making processes give rise to the observed rate, extent or order of the diffusion process.

 

Source: http://search.proquest.com/docview/1038375481