Impact of Rumor Spreading in a ‘Small World’ Social Network on Pricing Decision

Authors

Li Feng, 1.School of Business Administration, South China University of Technology, Guangzhou 510640, China; ;
Wei Ying, 2.Department of Business Administration, Jinan University, Guangzhou 510632, China;

Abstract

Abstract: This paper adopts methodology of multi-agent based modeling to represent rumor spreading on small-world social network and to address impacts of rumor on pricing decision and profit of supplier. In the model, the process of rumor diffusion follows well-accepted ‘Susceptible-Infective-Removal’ (SIR) model. Simulation proved that mathematic analysis of SIR model overestimated the results of rumor diffusion while PageRank algorithm is a more ‘efficient’ method to choose the source node for rumor propagation according to all four proposed indicators. Sensitivity analysis of two parameters in SIR model, spreading rate and ignoring rate, indicates that the loss of profit will be less with the increasing of two parameters.

Recommended Citation

Feng, Li and Ying, Wei (2019) "Impact of Rumor Spreading in a ‘Small World’ Social Network on Pricing Decision," Journal of System Simulation: Vol. 30: Iss. 2, Article 21.
DOI: 10.16182/j.issn1004731x.joss.201802021
Available at: https://dc-china-simulation.researchcommons.org/journal/vol30/iss2/21

First Page

533

DOI Link

https://doi.org/10.16182/j.issn1004731x.joss.201802021

Last Page

542

CLC

TP391.9

Recommended Citation

Li Feng, Wei Ying. Impact of Rumor Spreading in a ‘Small World’ Social Network on Pricing Decision[J]. Journal of System Simulation, 2018, 30(2): 533-542.

DOI

10.16182/j.issn1004731x.joss.201802021