Diffusion of innovations in a social network under mixed Pareto–Nash strategies

We study a simple model of diffusion of innovations in a network of agents that are characterized by their technological level. Agents can follow Nash or Pareto strategies when they decide whether to upgrade their level or not. We study the behavior of the average payoff per agent and the mean velocity of progress as function of the upgrading cost. We find that the strategy that maximizes the velocity of progress depends on the value of the upgrading cost, independently of the relative number of agents that use one or the other strategy.