Co-evolution between firms and consumers

This paper presents a model-based analysis of the introduction of green products, which are products with low environmental impacts. Both consumers and firms are simulatedas populations of agents who differ in their behavioural charac- teristics. Model experiments illustrate the influence of behavioural characteristics on the success of switching to green consumption. The model reproduces empirical observedstylisedfacts andshows the importance of social processing andstatus seeking in diffusion processes. The flexibility of firms to adapt to new technology is foundto have an important influence on the type of consumers who change their consumption to green products in the early phase of the diffusion process.