Human behavior is perplexingly
complex. Why their collective behavior is so well described by rather
general mathematical models using very few parameters? Why do they not
need deeper insight into the human psychology or decision making? One of
the simple answers - if the statistical signature is not present in the
data, which is usually aggregated at least to some degree, we can do
nothing about it. Namely, usually we do not observe individuals making
decisions and as such we are will not be able to differentiate between
different mechanisms of human decision making. There are two major
mechanisms of human decision making - homophily (selecting your peers)
and peer pressure (adopting your peers behavior). Mathematically there
usually will be no difference between them, both mechanisms can be be
described using the same Kirman's
model.
In this text we will consider Bass diffusion
model with heterogeneous
agents (each of them having his own independent parameters). We will
show that the heterogeneous model produces similar macroscopic dynamics
as homogeneous model. To simplify matter even further we will use
unidirectional Kirman's
model.