An integral explanation to the S-shape growth figure in network effect product market

Abstract

The growth figure of network effect product user number always has an S-shape. We divide the consumers into five categories (active rational, passive rational, sheep herd, active non-rational, passive non-rational) and simulate the market with the multi-agent modeling method. Through analyzing the growth figure and interactions between each group, we give an integral explanation to how the S-shape figure forms. In support of our research, we also studied the case of the blog service market in China.