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Dispersed Information and the Origins of Aggregate Fluctuations

Grazzini, Jakob; Massaro, Domenico - 2016

In the presence of dispersed information, agents may decide to take into account the actions of other agents because of the possible additional information conveyed by these actions. We call the act of using other agents’ actions in the individual decision process social learning. This paper...

Persistent link: https://www.econbiz.de/10011522457

Learning, liquidity preference, and business cycle

Horii, Ryo; Ono, Yoshiyasu - 2004

random liquidity shock. When observing the shock, they rationally update their belief so that the shock probability is higher …; consequently they raise liquidity preference and reduce consumption. As the period without the shock lasts, they become more … realized frequency of the shock: when the shock occurs many times in succession, the consumption recovery is first slow …

Persistent link: https://www.econbiz.de/10010332232

Naïve Learning in Social Networks: Convergence, Influence and Wisdom of Crowds

Jackson, Matthew O.; Golub, Benjamin - 2007

We study learning and influence in a setting where agents communicate according to an arbitrary social network and naïvely update their beliefs by repeatedly taking weighted averages of their neighbors' opinions. A focus is on conditions under which beliefs of all agents in large societies...

Persistent link: https://www.econbiz.de/10010312406

Dynamic R&D networks

König, Michael D. - 2013

In this paper we analyze R&D collaboration networks in industries where firms are competitors in the product market. Firms' benefits from collaborations arise by sharing knowledge about a cost-reducing technology. By forming collaborations, however, firms also change their own competitive...

Persistent link: https://www.econbiz.de/10010316852

Evolution of social networks

Hellmann, Tim; Staudigl, Mathias - 2012

Modeling the evolution of networks is central to our understanding of modern large communication systems, such as theWorld-Wide-Web, as well as economic and social networks. The research on social and economic networks is truly interdisciplinary and the number of modeling strategies and concepts...

Persistent link: https://www.econbiz.de/10010319962

Opinion dynamics under conformity

Buechel, Berno; Hellmann, Tim; Klößner, Stefan - 2012

We present a model of opinion formation where individuals repeatedly engage in discussion and update their opinion in a social network similarly to the DeGroot model. Abstracting from the standard assumption that individuals always report their opinion truthfully, agents in our model interact...

Persistent link: https://www.econbiz.de/10010319986

The economic properties of software

von Engelhardt, Sebastian - 2008

Software is a good with very special economic characteristics. Taking a general definition of software as its starting-point, this article systematically elaborates the central qualities of the commodity which have implications for its production and cost structure, the demand, the...

Persistent link: https://www.econbiz.de/10010273764

Simultaneous Search and Network Efficiency

Gautier, Pieter A.; Holzner, Christian - 2011

When workers send applications to vacancies they create a network. Frictions arise if workers do not know where other workers apply to (this affects network creation) and firms do not know which candidates other firms consider (this affects network clearing). We show that those frictions and the...

Persistent link: https://www.econbiz.de/10010277402

Coordination in Evolving Networks with Endogenous Decay

Feri, Francesco; Meléndez-Jiménez, Miguel A. - 2009

This paper studies an evolutionary model of network formation with endogenous decay, in which agents benefit both from direct and indirect connections. In addition to forming (costly) links, agents choose actions for a coordination game that determines the level of decay of each link. We address...

Persistent link: https://www.econbiz.de/10010294802

Risk Aversion and Social Networks

Kovarik, Jaromir; van der Leij, Marco J. - 2011

Agents involved in the formation of a social or economic network typically face uncertainty about the benefits of creating a link. However, the interplay of such uncertainty and risk attitudes has been neglected in the network formation literature. We propose a dynamic network formation model...

Persistent link: https://www.econbiz.de/10010325766