Co-evolution of Social Networks and Diffusion of Innovations

Based on coordination game and dynamic network,this paper uses a co-evolution model with social networks and innovation diffusion to analyze the interplay of innovation diffusion process,the total benefits and structure of the social networks,by using the methods of simulation and ecconometrics.The results show that the impact of agent action and social network structure on innovation diffusion has relationships with the relative advantage of innovation itself.When the relative advantage of innovation is good enough,it is easser to diffuse in dense network or by the regular connection rules in local network.The total benefits of the social networks do not only depend on the characteristics of innovation and adopters,but also the local network effects and structure of the social networks.Furthermore,the strategic choice of agents in the micro-level of innovation diffusion changes the characteristics of social networks,such as the heterogeneity of degree distribution,the small-world property and degree correlation.Those conclusions not only give insight into the dynamic coupling and bidirectional feedbacks between social networks and innovation diffusion,but also give us a new angle of view to understand the inherent mechanisms of innovation diffusion.