IDEAS home Printed from https://ideas.repec.org/a/eee/jeborg/v123y2016icp78-96.html
   My bibliography  Save this article

Network cognition

Author

Listed:
  • Dessí, Roberta
  • Gallo, Edoardo
  • Goyal, Sanjeev

Abstract

We study individual ability to memorize and recall information about friendship networks using a combination of experiments and survey-based data. In the experiment subjects are shown a network, in which their location is exogenously assigned, and they are then asked questions about the network after it disappears. We find that subjects exhibit three main cognitive biases: (i) they underestimate the mean degree compared to the actual network; (ii) they overestimate the number of rare degrees; (iii) they underestimate the number of frequent degrees. We then analyze survey data from two ‘real’ friendship networks from a Silicon Valley firm and from a University Research Center. We find, somewhat remarkably, that individuals in these real networks also exhibit these biases.

Suggested Citation

  • Dessí, Roberta & Gallo, Edoardo & Goyal, Sanjeev, 2016. "Network cognition," Journal of Economic Behavior & Organization, Elsevier, vol. 123(C), pages 78-96.
    • Handle: RePEc:eee:jeborg:v:123:y:2016:i:c:p:78-96
    DOI: 10.1016/j.jebo.2015.11.015
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0167268115003224
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jebo.2015.11.015?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Sanjeev Goyal, 2007. "Introduction to Connections: An Introduction to the Economics of Networks," Introductory Chapters, in: Connections: An Introduction to the Economics of Networks, Princeton University Press.
    2. Gary Charness & Francesco Feri & Miguel A. Meléndez‐Jiménez & Matthias Sutter, 2014. "Experimental Games on Networks: Underpinnings of Behavior and Equilibrium Selection," Econometrica, Econometric Society, vol. 82(5), pages 1615-1670, September.
    3. Syngjoo Choi & Edoardo Gallo & Shachar Kariv, 2015. "Networks in the laboratory," Cambridge Working Papers in Economics 1551, Faculty of Economics, University of Cambridge.
    4. Dessi, Roberta & Rustichini, Aldo, 2011. "Work for Image and Work for Pay," TSE Working Papers 11-252, Toulouse School of Economics (TSE).
    5. Andrea Galeotti & Sanjeev Goyal & Matthew O. Jackson & Fernando Vega-Redondo & Leeat Yariv, 2010. "Network Games," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 77(1), pages 218-244.
    6. Urs Fischbacher, 2007. "z-Tree: Zurich toolbox for ready-made economic experiments," Experimental Economics, Springer;Economic Science Association, vol. 10(2), pages 171-178, June.
    7. Uri Gneezy & Aldo Rustichini, 2000. "Pay Enough or Don't Pay at All," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 115(3), pages 791-810.
    8. Dessi, Roberta & Rustichini, Aldo, 2015. "Strong intrinsic motivation," TSE Working Papers 15-567, Toulouse School of Economics (TSE).
    9. Jackson Matthew O. & Rogers Brian W., 2007. "Relating Network Structure to Diffusion Properties through Stochastic Dominance," The B.E. Journal of Theoretical Economics, De Gruyter, vol. 7(1), pages 1-16, February.
    10. Daniel Kahneman & Amos Tversky, 2013. "Prospect Theory: An Analysis of Decision Under Risk," World Scientific Book Chapters, in: Leonard C MacLean & William T Ziemba (ed.), HANDBOOK OF THE FUNDAMENTALS OF FINANCIAL DECISION MAKING Part I, chapter 6, pages 99-127, World Scientific Publishing Co. Pte. Ltd..
    11. Vega-Redondo,Fernando, 2007. "Complex Social Networks," Cambridge Books, Cambridge University Press, number 9780521674096.
    12. Vega-Redondo,Fernando, 2007. "Complex Social Networks," Cambridge Books, Cambridge University Press, number 9780521857406.
    13. Gallo, Edoardo, 2014. "Social learning by chit-chat," Journal of Economic Theory, Elsevier, vol. 153(C), pages 313-343.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Mira Frick & Ryota Iijima & Yuhta Ishii, 2018. "Dispersed Behavior and Perceptions in Assortative Societies," Cowles Foundation Discussion Papers 2128R2, Cowles Foundation for Research in Economics, Yale University, revised Oct 2021.
    2. Chalotte Saucet & Marie Claire Villeval, 2018. "Motivated Memory in Dictator Games," Working Papers 1804, Groupe d'Analyse et de Théorie Economique Lyon St-Étienne (GATE Lyon St-Étienne), Université de Lyon.
    3. Saucet, Charlotte & Villeval, Marie Claire, 2019. "Motivated memory in dictator games," Games and Economic Behavior, Elsevier, vol. 117(C), pages 250-275.
    4. Edoardo Gallo & Chang Yan, 2015. "Effciency and equilibrium in network games: An experiment," Cambridge Working Papers in Economics 1546, Faculty of Economics, University of Cambridge.
    5. Syngjoo Choi & Edoardo Gallo & Shachar Kariv, 2015. "Networks in the laboratory," Cambridge Working Papers in Economics 1551, Faculty of Economics, University of Cambridge.
    6. Gallo Edoardo, 2012. "Small World Networks with Segregation Patterns and Brokers," Review of Network Economics, De Gruyter, vol. 11(3), pages 1-46, September.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Jackson, Matthew O. & Zenou, Yves, 2015. "Games on Networks," Handbook of Game Theory with Economic Applications,, Elsevier.
    2. Syngjoo Choi & Andrea Galeotti & Sanjeev Goyal, 2017. "Trading in Networks: Theory and Experiments," Journal of the European Economic Association, European Economic Association, vol. 15(4), pages 784-817.
    3. de Marti, Joan & Zenou, Yves, 2009. "Social Networks," Working Paper Series 816, Research Institute of Industrial Economics.
    4. Dunia Lopez-Pintado, 2016. "Influence networks and public goods," UMASS Amherst Economics Working Papers 2016-12, University of Massachusetts Amherst, Department of Economics.
    5. Battiston, Stefano & Delli Gatti, Domenico & Gallegati, Mauro & Greenwald, Bruce & Stiglitz, Joseph E., 2012. "Liaisons dangereuses: Increasing connectivity, risk sharing, and systemic risk," Journal of Economic Dynamics and Control, Elsevier, vol. 36(8), pages 1121-1141.
    6. Andrea Galeotti & Luca Paolo Merlino, 2014. "Endogenous Job Contact Networks," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 55(4), pages 1201-1226, November.
    7. Matthew O. Jackson & Brian W. Rogers & Yves Zenou, 2017. "The Economic Consequences of Social-Network Structure," Journal of Economic Literature, American Economic Association, vol. 55(1), pages 49-95, March.
    8. Pablo Branas-Garza & Ramon Cobo-Reyes & Natalia Jimenez & Giovanni Pontiy, 2013. "A Guided Tour to (Real-Life) Social Network Elicitation," Working Papers 13-21, Chapman University, Economic Science Institute.
    9. Oyama, Daisuke & Takahashi, Satoru, 2015. "Contagion and uninvadability in local interaction games: The bilingual game and general supermodular games," Journal of Economic Theory, Elsevier, vol. 157(C), pages 100-127.
    10. López-Pintado, Dunia & Meléndez-Jiménez, Miguel A., 2021. "Far above others," Journal of Economic Theory, Elsevier, vol. 198(C).
      • Dunia López-Pintado & Miguel A. Meléndez-Jiménez, 2018. "Far above others," Working Papers 18.12, Universidad Pablo de Olavide, Department of Economics.
    11. Topa, Giorgio & Zenou, Yves, 2015. "Neighborhood and Network Effects," Handbook of Regional and Urban Economics, in: Gilles Duranton & J. V. Henderson & William C. Strange (ed.), Handbook of Regional and Urban Economics, edition 1, volume 5, chapter 0, pages 561-624, Elsevier.
    12. Pablo Branas-Garza & Natalia Jimenez & Giovanni Ponti, 2017. "Eliciting real-life social networks: a guided tour," Journal of Behavioral Economics for Policy, Society for the Advancement of Behavioral Economics (SABE), vol. 1(1), pages 33-39, February.
    13. Marcin Dziubinski & Sanjeev Goyal, 2014. "How to Defend a Network?," Cambridge Working Papers in Economics 1450, Faculty of Economics, University of Cambridge.
    14. Italo Bischi, Gian & Lamantia, Fabio, 2012. "A dynamic model of oligopoly with R&D externalities along networks. Part II," Mathematics and Computers in Simulation (MATCOM), Elsevier, vol. 84(C), pages 66-82.
    15. Shupp, Robert & Sheremeta, Roman M. & Schmidt, David & Walker, James, 2013. "Resource allocation contests: Experimental evidence," Journal of Economic Psychology, Elsevier, vol. 39(C), pages 257-267.
    16. , David, 2016. "The formation of networks with local spillovers and limited observability," Theoretical Economics, Econometric Society, vol. 11(3), September.
    17. Tomohiko Tomohiko, 2015. "Network Heterogeneity and a Coordination Game," Economics Bulletin, AccessEcon, vol. 35(4), pages 2462-2474.
    18. Dziubiński, Marcin Konrad & Goyal, Sanjeev, 2017. "How do you defend a network?," Theoretical Economics, Econometric Society, vol. 12(1), January.
    19. López-Pintado, Dunia, 2012. "Influence networks," Games and Economic Behavior, Elsevier, vol. 75(2), pages 776-787.
    20. Lea Ellwardt & Penélope Hernández & Guillem Martínez-Canovas & Manuel Muñoz-Herrera, 2014. "Conflict and segregation in networks: An experiment on the interplay between individual preferences and social influence," Discussion Papers in Economic Behaviour 0114, University of Valencia, ERI-CES.

    More about this item

    Keywords

    Networks; Cognition; Degree distributions; Biases;
    All these keywords.

    JEL classification:

    • Z1 - Other Special Topics - - Cultural Economics

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jeborg:v:123:y:2016:i:c:p:78-96. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/jebo .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.