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Herd Behavior Analysis Based on Evolutionary Game Theory in the Decision-Making of Innovation Adoption

  • Mao Yan-niEmail author
  • Zhou Lei
Conference paper
Part of the Communications in Computer and Information Science book series (CCIS, volume 387)

Abstract

Information Cascades are fairly important to individual decision making, however, it of lead to adoption of inferior products. Many researches on herd behavior have limited their scope on the phenomenon in capital markets and the behavior of investors, but few of them focus on the herd behavior of agents. This paper aims to employ the evolutionary game theory to explain the cause of the herd behavior of agents in their decision-making process for innovation adoption. Furthermore, the effects of herd behavior on innovation adoption and diffusion are analyzed. A kind of remuneration incentives mechanism is then presented in order to circumvent the herd behavior of agents. Last but not the least, a case study on the innovation adoption of e-business enterprises in China has been conducted to demonstrate the effectiveness of the proposed methods.

Keywords

Innovation adoption Herd behavior Evolutionary game Incentive mechanism 

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Copyright information

© Springer-Verlag Berlin Heidelberg 2013

Authors and Affiliations

  1. 1.School of Information ManagementWuhan UniversityWuhanPeople’s Republic of China
  2. 2.School of International Economics and BusinessNanjing University of Finance and EconomicsNanjingPeople’s Republic of China

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