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Contagion

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  • Morris, Stephen

Abstract

Each player in an infinite population interacts strategically with a finite subset of that population. Suppose each player's binary choice in each period is a best response to the population choices of the previous period. When can behaviour that is initially played by only a finite set of player spread to the whole population? This paper characterizes when such contagion is possible for arbitrary local interaction systems. Maximal contagion occurs when local interaction is sufficiently uniform and there is low neighbour growth, i.e. the number of players who can be reached in k steps does not grow exponentially in k. Copyright 2000 by The Review of Economic Studies Limited

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Bibliographic Info

Article provided by Wiley Blackwell in its journal Review of Economic Studies.

Volume (Year): 67 (2000)
Issue (Month): 1 (January)
Pages: 57-78

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Handle: RePEc:bla:restud:v:67:y:2000:i:1:p:57-78

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  1. George J. Mailath & Larry Samuelson & Avner Shaked, . "Correlated Equilibria and Local Interactions," CARESS Working Papres 97-6, University of Pennsylvania Center for Analytic Research and Economics in the Social Sciences.
  2. S. Morris & R. Rob & H. Shin, 2010. "p-dominance and Belief Potential," Levine's Working Paper Archive 505, David K. Levine.
  3. Sugden, Robert, 1995. "The coexistence of conventions," Journal of Economic Behavior & Organization, Elsevier, vol. 28(2), pages 241-256, October.
  4. Ellison, Glenn, 1993. "Learning, Local Interaction, and Coordination," Econometrica, Econometric Society, vol. 61(5), pages 1047-71, September.
  5. Mailath, G.J. & Samuelson, L. & Shaked, A., 1994. "Evolution and Endogenous Interations," Working papers 9426, Wisconsin Madison - Social Systems.
  6. John C. Harsanyi & Reinhard Selten, 1988. "A General Theory of Equilibrium Selection in Games," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262582384, December.
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Cited by:
  1. Sebastian Edwards, 2001. "Does the Current Account Matter?," NBER Working Papers 8275, National Bureau of Economic Research, Inc.
  2. Stephen Morris & Hyun Song Shin, 2000. "Global Games: Theory and Applications," Cowles Foundation Discussion Papers 1275, Cowles Foundation for Research in Economics, Yale University.
  3. Sandholm,W.H., 2001. "Pigouvian pricing and stochastic evolutionary implementation," Working papers 16, Wisconsin Madison - Social Systems.
  4. John Duffy, 2004. "Agent-Based Models and Human Subject Experiments," Computational Economics 0412001, EconWPA.
  5. Ianni, Antonella & Corradi, Valentina, 2000. "Consensus, contagion and clustering in a space-time model of public opinion formation," Discussion Paper Series In Economics And Econometrics 0009, Economics Division, School of Social Sciences, University of Southampton.
  6. Mary A. Burke & Gary M. Fournier & Kislaya Prasad, 2006. "The Emergence of Local Norms in Networks," Working Papers wp2006_02_01, Department of Economics, Florida State University.
  7. Allen wilhite, 2005. "PD Games on Networks," Computing in Economics and Finance 2005 20, Society for Computational Economics.
  8. Thomas Quint & Martin Shubik, 2003. "On Local and Network Games," Cowles Foundation Discussion Papers 1414, Cowles Foundation for Research in Economics, Yale University.
  9. Franklin Allen & Douglas Gale, 2003. "Financial Intermediaries and Markets," Center for Financial Institutions Working Papers 00-44, Wharton School Center for Financial Institutions, University of Pennsylvania.
  10. Corbae, Dean & Duffy, John, 2008. "Experiments with network formation," Games and Economic Behavior, Elsevier, vol. 64(1), pages 81-120, September.
  11. Michael Chwe, 2006. "Statistical Game Theory," Theory workshop papers 815595000000000004, UCLA Department of Economics.
  12. Yannis Ioannides, 2006. "Topologies of social interactions," Economic Theory, Springer, vol. 28(3), pages 559-584, 08.

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