Research on Policy Induced Diffusion of Agri-machinery for BOP Groups——via Agent-based Simulation

Abstract

Abstract:

BOP strategy provides a new way for governance of global poverty. In this strategy, it is essential to take effective policies to ensure the adoption of new products or services. By taking small machine as an example, this paper establishes an agent-based model of adoption to explore the influence of market degree of freedom, information policy, purchase subsidy policy and combination of information and subsidy policy on the adoption rate and level of new products of BOP group via simulation in the two kinds of market structure of monopoly and competition. And, it is conducive for us to understand the dynamic process of induced diffusion from three aspects:intervention types, object and time. Results show that policy intervention is conducive to stimulating BOP groups to adopt agri-machinery equipment, but the effect of policy stimulus is different in the two types of market structure. The same policy is not effective for different BOP target groups. The best-suited intervention depends on the policy's objectives. Information policy can speed up adoption, but the diffusion level is ineffective in monopolies. Subsidy policy can boost speed and level, but increase costs of policy as well. Market structure is critical:policy interventions in closed market primarily favor monopolists, while strengthening competition promotes effectiveness and efficiency of diffusion. The joint intervention of information and subsidy policy can obtain synergy effect in the free competitive market, and early intervention is conducive to the effectiveness of the policy.

Key words: induced diffusion, BOP groups, agent-based model, agri-machinery adoption, policy options

Tong Hongzhi, Liu Wei. Research on Policy Induced Diffusion of Agri-machinery for BOP Groups——via Agent-based Simulation[J]. , 2019, 31(8): 260-276.

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