Information technology diffusion: a review of empirical research
ICIS '92 Proceedings of the thirteenth international conference on Information systems
A Punctuated-Equilibrium Model of Technology Diffusion
Management Science
Minority Games: Interacting Agents in Financial Markets (Oxford Finance Series)
Minority Games: Interacting Agents in Financial Markets (Oxford Finance Series)
Welfare maximization in congestion games
EC '06 Proceedings of the 7th ACM conference on Electronic commerce
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While diffusion of innovation topics in economics and majority games in game theory have been widely studied, the impact of economy-of-scale effects in aggregated decision making has received little attention. In this paper, we present a basic model, the Game of Scale, to study the effects of economy-of-scale in decision making among a large pool of self-interested agents. We solve the model's static equilibria and present two dynamic decision models, one myopic and one trend-following. Most of the parameter space converges quickly; however, the behaviors exhibited near critical input values show drastic changes. We demonstrate how trend-following can improve global outcomes over myopic decision making. Finally, we describe how the game can be externally controlled.