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Threshold Models of Technological Transitions Utrecht University Summerschool Complex Systems August 2015

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Page 1: Threshold Models of Technological Transitions Utrecht University Summerschool Complex Systems August 2015

Threshold Modelsof Technological Transitions

Utrecht UniversitySummerschool Complex Systems

August 2015

Page 2: Threshold Models of Technological Transitions Utrecht University Summerschool Complex Systems August 2015

Introduction• A large part of complexity research deals with conditions under which autonomous

particles or agents suddenly show coordinated behaviour leading to the emergence of macroscopic patterns.

• In the social sciences this is an old question as human agents are in principle driven by personal contexts, yet sometimes show remarkable coordinated behaviour. Think of social unrest, social norms, fashions, media hypes, etc.

• The threshold is generally expressed as the number of other agents already adopting. Hence, many technologies are slow to diffuse due to this coordination, a.k.a. lock-in problem.

• There is a wide interest because of the need of sustainability transitions. • The take away message holds that there are many different but related ways to

explain sudden transitions, which means that empirical research really has to go to the micro level to understand mechanism or mechanisms.

• Similarly, policy will only work well if the exact process underlying technology adoption is well understood.

Page 3: Threshold Models of Technological Transitions Utrecht University Summerschool Complex Systems August 2015

Structure• I will discuss:

– The classic lock-in model of competing technologies– The modified lock-in model of transitions– Informational cascades– The NK-model– Percolation model

• Background literature:

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And the dominant designs that followed

PAGE 530/09/09

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A more recent example …

PAGE 630/09/09

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Dominant design

PAGE 730/09/09

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Lock-in

• Path dependence

• Irreversibility

• Multiple equilibria

• Unpredictability

• Population consists of 50-50 distribution of R-agents and S-agents

• Sequential decision-making

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Modified lock-in model of technological transitions

Page 10: Threshold Models of Technological Transitions Utrecht University Summerschool Complex Systems August 2015

Modified lock-in model

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Lock-in model

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Page 13: Threshold Models of Technological Transitions Utrecht University Summerschool Complex Systems August 2015

Informational cascades

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NK-model

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NK-model

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NK-model

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Percolation in a social network

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Percolation in a social network

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Different network structures

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• Upper bound to diffusion: 45º line (perfect information)

• Phase changes: from a non-diffusion to a diffusion regime

• Regular and Small world networks very inefficient

Thresholds depend on network structrures

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Thresholds depend on network structrures