Percolation of New Product Critical Market Penetration

Abstract

A simulation of new product market penetration in a social environment is performed, using a spintronic model, where each element of a 3D network interacts with its first neighbors. Agents are assumed to be rational, with a perfect market foresight. Unitary production cost decreases when consumption is increased. Simulations indicate that social interaction is the most important factor for new product market penetration as compared to the consumer readiness to pay a higher price. Besides the critical exponent of the nucleation of new consumers is computed, signing a phase transition characterized by the build up of new consumers intermediate clusters and this critical exponent is compared to others belonging to several critical phenomena.