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The paper studies the impact of homophily on the optimal strategies of a monopolist, whose marketing campaign of new product relies on a word of mouth communication. Homophily is a tendency of people to interact more with those who are similar to them. In the model there are two types of...
Persistent link: https://www.econbiz.de/10010272373
We examine how three different communication processes operating through social networks are affected by homophily … on repeated averaging of neighbors' information and Markovian diffusion processes such as the Google random surfer model … friendship networks from the Adolescent Health dataset. …
Persistent link: https://www.econbiz.de/10010279447
to international travel, as indicated by centrality in air travel networks and tourist numbers is strongly associated …
Persistent link: https://www.econbiz.de/10012305859
The novelty of our model is to combine models of collective action on networks with models of social learning. Agents …
Persistent link: https://www.econbiz.de/10010328348
We survey the literature on the economic consequences of the structure of social networks. We develop a taxonomy of … "macro" and "micro" characteristics of social interaction networks and discuss both the theoretical and empirical findings … concerning the role of those characteristics in determining learning, diffusion, decisions, and resulting behaviors. We also …
Persistent link: https://www.econbiz.de/10011794582
networks for which there is a convergence of beliefs. Finally, we survey some recent structural results on the speed of …
Persistent link: https://www.econbiz.de/10010312406
This paper studies an analytically tractable model of the formation and evolution of chains of production. Over time, entrepreneurs accumulate techniques to produce their good using goods produced by other entrepreneurs and labor as inputs. The value of a technique depends on both the...
Persistent link: https://www.econbiz.de/10010292100
We analyze binary choice models in communication networks, in which both, the formation of links in the network as well … networks, where agents choose their strategies - actions and links - according to a perturbed best response update rule. We …
Persistent link: https://www.econbiz.de/10011663181
characterizes the topology of competing (and potentially overlapping) diffusion paths. Sellers indirectly appropriate profits over … diffusion and confer monopoly power. Links that bridge distinct classes are redundant for diffusion and generate competition … among sellers. In dense networks, competition limits the scope of indirect appropriability and intellectual property rights …
Persistent link: https://www.econbiz.de/10013189086
I show how irrational ideas and rumors can drive asset prices - not because anyone believes them, but because they are commonly known without being common knowledge. The phenomenon is driven by short-term market participants who are well-informed about the information that others have, and who...
Persistent link: https://www.econbiz.de/10012099152