Research on the logic of product evolution using agent-based model

摘要

This research makes use of an agent-based model that simulates the product evolution affected by the producer's routine, consumer's preference, and complementarity of the product's features. We identify that the velocity of product evolution increases when the heterogeneity of producers or consumers and the complementarity between features increase. We draw some implications based on the results. In respect to policy, we see the need to create a favorable environment for heterogeneous producers to participate in the market to enhance competition. In respect to product development strategy, we see the need to focus on highly complementary technologies.