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Discovery and Diffusion of Knowledge in an Endogenous Social Network

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Author Info
Myong-Hun Chang
Joseph E Harrington Jr

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Abstract

We explore the evolution of the structure and performance of a social network in a population of individuals who search for local optima in diverse and dynamic task environments. Individuals choose whether to innovate or imitate and, in the latter case, from whom to learn. The probabilities of these possible actions respond to an individual's past experiences using reinforcement learning. Among some of our more interesting findings is that a population's performance is not monotonically increasing in either the reliability of the communication network or the productivity of innovation.

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Paper provided by The Johns Hopkins University,Department of Economics in its series Economics Working Paper Archive with number 489.

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Date of creation: Dec 2002
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Handle: RePEc:jhu:papers:489

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  1. Romer, Paul M, 1986. "Increasing Returns and Long-run Growth," Journal of Political Economy, University of Chicago Press, vol. 94(5), pages 1002-37, October. [Downloadable!] (restricted)
  2. Colin Camerer & Teck-Hua Ho, 1999. "Experience-weighted Attraction Learning in Normal Form Games," Econometrica, Econometric Society, vol. 67(4), pages 827-874, July.
  3. Romer, Paul M, 1990. "Endogenous Technological Change," Journal of Political Economy, University of Chicago Press, vol. 98(5), pages S71-102, October. [Downloadable!] (restricted)
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  4. Jackson, Matthew O., 1998. "The Evolution of Social and Economic Networks," Working Papers 1044, California Institute of Technology, Division of the Humanities and Social Sciences. [Downloadable!]
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  5. Venkatesh Bala & Sanjeev Goyal, 2000. "A Noncooperative Model of Network Formation," Econometrica, Econometric Society, vol. 68(5), pages 1181-1230, September.
  6. Matthew O. Jackson & Asher Wolinsky, 1995. "A Strategic Model of Social and Economic Networks," Discussion Papers 1098R, Northwestern University, Center for Mathematical Studies in Economics and Management Science. [Downloadable!]
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  1. Joseph E. Harrington, Jr, 2005. "Innovators, Imitators, and the Evolving Architecture of Social Networks," Economics Working Paper Archive 529, The Johns Hopkins University,Department of Economics. [Downloadable!]
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