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<article-title>Interactions between Market Barriers and Communication Networks<br/> in Marketing Systems</article-title>
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<author><a href="mailto:ian.durbach@uct.ac.za"><name>Ian N. Durbach</name></a></author>
<aff>Department of Statistical Sciences <br/>University of Cape Town Rondebosch 7701, South Africa</aff>

<author><a href="mailto:jn.hofmeyr@iafrica.com"><name>Jan H. Hofmeyr</name></a></author>
<aff>Synovate Brand and Communications Practice <br/>Alphen Business Park Constantia 7800, South Africa</aff>
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<title>ABSTRACT</title>
<p>We investigate a framework where agents search for satisfying products by using referrals from other agents. Our
model of a mechanism for transmitting word-of-mouth and
the resulting behavioural effects is based on integrating a
module governing the local behaviour of agents with a module governing the structure and function of the underlying
network of agents. Local behaviour incorporates a satisficing model of choice, a set of rules governing the interactions between agents, including learning about the trustworthiness of other agents over time, and external constraints
on behaviour that may be imposed by market barriers or
switching costs. Local behaviour takes place on a network
substrate across which agents exchange positive and negative information about products. We use various degree
distributions dictating the extent of connectivity, and incorporate both small-world effects and the notion of preferential
attachment in our network models. We compare the effectiveness of referral systems over various network structures
for easy and hard choice tasks, and evaluate how this effectiveness changes with the imposition of market barriers.</p>
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