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How Homophily Affects Learning and Diffusion in Networks

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Author Info
Benjamin Golub (Stanford University)
Matthew O. Jackson (Stanford University)

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Abstract

We examine how three different communication processes operating through social networks are affected by homophily - the tendency of individuals to associate with others similar to themselves. Homophily has no effect if messages are broadcast or sent via shortest paths; only connection density matters. In contrast, homophily substantially slows learning based on repeated averaging of neighbors' information and Markovian diffusion processes such as the Google random surfer model. Indeed, the latter processes are strongly affected by homophily but completely independent of connection density, provided this density exceeds a low threshold. We obtain these results by establishing new results on the spectra of large random graphs and relating the spectra to homophily. We conclude by checking the theoretical predictions using observed high school friendship networks from the Adolescent Health dataset.

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Publisher Info
Paper provided by Fondazione Eni Enrico Mattei in its series Working Papers with number 2009.35.

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Date of creation: May 2009
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Handle: RePEc:fem:femwpa:2009.35

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Related research
Keywords: Networks; Learning; Diffusion; Homophily; Friendships; Social Networks; Random Graphs; Mixing Time; Convergence; Speed of Learning; Speed of Convergence;

Find related papers by JEL classification:
D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search, Learning, and Information
D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation
I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities and Races; Non-labor Discrimination
Z13 - Other Special Topics - - Cultural Economics - - - Social Norms and Social Capital; Social Networks Economic Anthropology

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  1. Gale, Douglas & Kariv, Shachar, 2003. "Bayesian learning in social networks," Games and Economic Behavior, Elsevier, vol. 45(2), pages 329-346, November. [Downloadable!] (restricted)
  2. Bala, Venkatesh & Goyal, Sanjeev, 1998. "Learning from Neighbours," Review of Economic Studies, Blackwell Publishing, vol. 65(3), pages 595-621, July. [Downloadable!] (restricted)
  3. Banerjee, Abhijit & Fudenberg, Drew, 2004. "Word-of-mouth learning," Games and Economic Behavior, Elsevier, vol. 46(1), pages 1-22, January. [Downloadable!] (restricted)
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This page was last updated on 2009-11-6.


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