Author(s)

Juanjuan Qu, Taiye Luo

Corresponding Author

Juanjuan Qu

ABSTRACT

This paper uses evolutionary game theory to analyze the supply and demand game and the diffusion of customization products in social networks (taking small world networks and scale-free networks as examples). It finds out that buyers and sellers concurrently choose customized products or ordinary products is a stable evolution strategy. The diffusion of customized products and ordinary products in small world networks or scale-free networks can reach a stable state. In these two types networks, the centrality of nodes has a significant positive impact on buyers’ decision to choose customized products. Strengthen new work externality is beneficial to the diffusion of customized products.

KEYWORDS

Customization, Supply and Demand, Evolutionary Game, Network Externality