Try the Bass Diffusion Model Simulation

One of the most common exercises I go through with clients when assessing the growth projections for a new product or service is the simulation of market penetration and distribution. These growth estimates are fundamental and one of the most difficult things to predict.

While we use a variety of models depending on the application, one of the more common and best-documented growth projection models is the Bass Diffusion model, and we have been exploring the use of the Bass Diffusion model in modeling network effects in Platforms.  More about Bass Models can be found on Wikipedia

In an effort for us to quickly explore and demonstrate diffusion potential for clients, we have developed a simulation model based on some code initially shared by RPubs.  I wanted to share the model with others who might be trying to understand or explore the use of the Bass Diffusion Model and to collect feedback from other modelers who could help improve on this initial effort.

In the next iteration of our growth projections model, I am planning to add in the possibility to model growth using the Gompertz function. If there are other growth functions you would like to see added, please let me know and I will make every effort to accommodate.

Happy Modeling!