Keywords: sustainable economy, environmental sustainability, technology adoption, replicator dynamics, agent-based modelling, complex system simulation, regional diffusion, remanufactured tied products, ecologically conscious consumers, agent-based systems, multi-agent systems, component remanufacturing
Regional diffusion for remanufactured tied products in ecologically conscious consumers
In this paper, we demonstrate that independent aftermarket replacement component remanufacturers are able to help the host product manufacturers establish their market share. We employ agent-based simulation and evolutionary game theory in the light of innovative diffusion process with network externality and sustainability consciousness, in microscopic and dynamic emergent perspectives. We suggest a strategic decision management insight for better marketing an environmental sustainable product in a new product diffusion process. We show that both market share and long-term profitability of a tied product firm, with inferior market share, indeed can be raised significantly by applying the suggested price-protection-distribution decision strategy at specific timing when the ecologically conscious consumer segment grows.