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The Emergence of Local Norms in Networks

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Author Info
Mary Burke
Gary Fournier

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Abstract

We develop an explanation of the emergence of local norms, and the associated phenom- enon of geographical variation in behavior. Individuals are assumed to interact locally with neighbors in an environment with a network externality. Although many patterns of behavior are possible, the dispersed interactive choices of agents are shown to select behavior that is locally uniform but globally diverse. The range of applications of the theory includes regional variation in the practice of medicine, technology choice, and corruption. The framework is also useful for further developing our understanding of important phenomena like lock-in, critical thresholds, and contagion

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Paper provided by Society for Computational Economics in its series Computing in Economics and Finance 2005 with number 299.

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Date of creation: 11 Nov 2005
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Handle: RePEc:sce:scecf5:299

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Related research
Keywords: Social norms; networks; geographical variation;

Find related papers by JEL classification:
C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games
D02 - Microeconomics - - General - - - Institutions: Design, Formation, and Operations

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    Other versions:
  2. Ellison, Glenn, 1993. "Learning, Local Interaction, and Coordination," Econometrica, Econometric Society, vol. 61(5), pages 1047-71, September. [Downloadable!] (restricted)
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  13. Harris Selod & Yves Zenou, 2001. "Social Interactions, Ethnic Minorities and Urban Unemployment," Annales d'Economie et de Statistique, ADRES, issue 63-64, pages 11, Juillet-D. [Downloadable!]
    Other versions:
  14. Krugman, Paul, 1991. "Increasing Returns and Economic Geography," Journal of Political Economy, University of Chicago Press, vol. 99(3), pages 483-99, June. [Downloadable!] (restricted)
    Other versions:
  15. H. Peyton Young & Mary A. Burke, 2001. "Competition and Custom in Economic Contracts: A Case Study of Illinois Agriculture," American Economic Review, American Economic Association, vol. 91(3), pages 559-573, June. [Downloadable!] (restricted)
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