Diffusion and contagion in networks with heterogeneous agents and homophily
AbstractWe study how a behavior (an idea, buying a product, having a disease, adopting a cultural fad or a technology) spreads among agents in an a social network that exhibits segregation or homophily (the tendency of agents to associate with others similar to themselves). Individuals are distinguished by their types (e.g., race, gender, age, wealth, religion, profession, etc.) which, together with biased interaction patterns, induce heterogeneous rates of adoption. We identify the conditions under which a behavior diffuses and becomes persistent in the population. These conditions relate to the level of homophily in a society, the underlying proclivities of various types for adoption or infection, as well as how each type interacts with its own type. In particular, we show that homophily can facilitate diffusion from a small initial seed of adopters.
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Bibliographic InfoPaper provided by Universidad Pablo de Olavide, Department of Economics in its series Working Papers with number 11.14.
Length: 20 pages
Date of creation: Dec 2011
Date of revision:
Diffusion; Homophily; Segregation; Social Networks;
Other versions of this item:
- JACKSON, Matthew O. & LOPEZ-PINTADO, Dunia, 2012. "Diffusion and contagion in networks with heterogeneous agents and homophily," CORE Discussion Papers, UniversitÃ© catholique de Louvain, Center for Operations Research and Econometrics (CORE) 2012012, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation
- D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search, Learning, and Information
- C70 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - General
- C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games
- L15 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Information and Product Quality
- C45 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Neural Networks and Related Topics
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-01-03 (All new papers)
- NEP-DEM-2012-01-03 (Demographic Economics)
- NEP-EVO-2012-01-03 (Evolutionary Economics)
- NEP-GTH-2012-01-03 (Game Theory)
- NEP-NET-2012-01-03 (Network Economics)
- NEP-SOC-2012-01-03 (Social Norms & Social Capital)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Sergio Currarini & Matthew O. Jackson & Paolo Pin, 2009.
"An Economic Model of Friendship: Homophily, Minorities, and Segregation,"
Econometrica, Econometric Society,
Econometric Society, vol. 77(4), pages 1003-1045, 07.
- Sergio Currarini & Paolo Pin & Matthew O. Jackson, 2007. "An Economic Model of Friendship: Homophily, Minorities and Segregation," Working Papers 2007_20, Department of Economics, University of Venice "Ca' Foscari".
- López-Pintado, Dunia, 2008.
"Diffusion in complex social networks,"
Games and Economic Behavior, Elsevier,
Elsevier, vol. 62(2), pages 573-590, March.
- Dunia López-Pintado, 2004. "Diffusion In Complex Social Networks," Working Papers. Serie AD, Instituto Valenciano de Investigaciones EconÃ³micas, S.A. (Ivie) 2004-33, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
- Andrea Galeotti & Sanjeev Goyal & Matthew O. Jackson & Fernando Vega-Redondo & Leeat Yariv, 2010.
Review of Economic Studies,
Oxford University Press, vol. 77(1), pages 218-244.
- Andrea Galeotti & Sanjeev Goyal & Matthew O. Jackson & Fernando Vega-Redondo & Leeat Yariv, 2008. "Network Games," Economics Working Papers, European University Institute ECO2008/07, European University Institute.
- Dunia López-Pintado, 2006. "Contagion and coordination in random networks," International Journal of Game Theory, Springer, Springer, vol. 34(3), pages 371-381, October.
- 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, De Gruyter, vol. 7(1), pages 1-16, February.
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