Coalition formation and the diffusion of shared goods: An agent-based model

Abstract This paper combines an evolutionary model of consumer coalition formation with a model of diffusion on a network to explore the dynamics of how groups of neighboring individuals adopt a shared good, as a form of collective action that is more sustainable than individual adoption. We show that coalition formation is a prerequisite for the adoption of a shared good but also an obstacle to diffusion. The smaller the geographic area of consumers who can use the shared good, the lower the adoption rate. Early information is a key factor; those who do not join a group at an early stage remain isolated and never adopt. Furthermore, geographic constraints limit the spread of information and adoption. We discuss how policymakers can support social actions that lead to the adoption of shared goods and promote sustainable transformation of our societies.