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difference to Cable TV revenues. In the sciences, this process of
displacement is known as a paradigm shift (Thomas Kuhn (1922–
1996)), as an established construct is displaced by a new one often in

the face of enormous opposition from the adherents of the old idea.

What Drives Diffusion?

There are two constructs of complexity theory that underlie diffusion:

 Networked interactions: These either facilitate or block
communication of the idea amongst agents and

 Feedback Loops: The amplifying effect of supportive or
derogatory feedback between agents that drives the growth of
the new idea and decline of the old idea or the collapse of a new
offering.

Network Interactions

At the simplest, a human network involves an agent (person, firm)

interacting in any way with other agents to transfer information (facts,
opinions, orders). Such individual interactions occur on a huge scale
all the time creating a many-to-many network of interactions that can

be represented graphically using software (see Networks). Information
about the idea or offering can be thought of as flowing across the
network. For a prime example, think of a rumor exploding across the
internet. The speed and reach of the spread of the rumor depend on

the reach of the network and the willingness of individual agents to
pass it on (see virality).

Opinion Feedback

Best seen through an example. Say an agent passes on an opinion
about an offering by word of mouth to people he or she knows and

who respect his or her opinion. He or she attaches to the opinion
(explicitly or by implication) recommendation or warning about the

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