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Topologies of Social Interactions

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Author Info
Yannis Ioannides ()

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Abstract

The paper adapts to richer social structures the Brock-Durlauf model of interactive discrete choice, where individuals’ decisions are influenced by the decisions of others. Social structure is modelled by a description of who interacts with whom, by means of a graph, with individuals as vertices and interaction between individuals as edges. The paper extends the mean field case to such alternative stylized interaction topologies as when individuals are connected through a common intermediary, the graph topology of interactions is a cycle or an one-dimensional lattice. Some results are qualitatively similar to the mean field case, but a richer class of anisotropic equilibria is also explored, for the case of the cycle and one-dimensional lattice. Social equilibria are also explored under the condition that individuals’ behavior is affected by the actual behavior of their neighbors and links are made with the econometric theory of systems of simultaneous equations modelling discrete decisions. The paper studies the role of interaction topology for the dynamics of adjustment towards isotropic equilibria. It compares circular interaction along a one-dimensional lattice with and without closure and shows that both lead to endogenous and generally transient spatial oscillations. However, closure of the social structure is responsible for relative persistence.

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Paper provided by Department of Economics, Tufts University in its series Discussion Papers Series, Department of Economics, Tufts University with number 0104.

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Date of creation: 2001
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Handle: RePEc:tuf:tuftec:0104

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Keywords: interactions; dynamics; spatial oscillations; interactive discrete choice; neighborhood effects; Ising model; random fields;

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This paper has been announced in the following NEP Reports: References listed on IDEAS
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  21. Morris, Stephen, 2000. "Contagion," Review of Economic Studies, Blackwell Publishing, vol. 67(1), pages 57-78, January.
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  23. Quah, Danny, 2000. "Internet cluster emergence," European Economic Review, Elsevier, vol. 44(4-6), pages 1032-1044, May. [Downloadable!] (restricted)
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  24. Puga, Diego & Venables, Anthony J., 1997. "Preferential trading arrangements and industrial location," Journal of International Economics, Elsevier, vol. 43(3-4), pages 347-368, November. [Downloadable!] (restricted)
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  25. Danny Quah, 2000. "Internet Cluster Emergence," CEP Discussion Papers dp0441, Centre for Economic Performance, LSE. [Downloadable!]
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Cited by:
(explanations, 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.)

  1. Drusilla K. Brown & Rajesh Chadha & Alan V. Deardorff & Robert M. Stern, 2001. "Computational Analysis of the Impact on India of the Uruguay Round and the Forthcoming WTO Trade Negotiations," Discussion Papers Series, Department of Economics, Tufts University 0107, Department of Economics, Tufts University. [Downloadable!]
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  2. Ballester, Coralio & Calvó-Armengol, Antoni & Zenou, Yves, 2004. "Who's Who in Crime Network. Wanted the Key Player," Working Paper Series 617, Research Institute of Industrial Economics. [Downloadable!]
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  3. George Norman & Lynne Pepall & Dan Richards, 2001. "Versioning, Brand-Stretching, and the Evolution of e-Commerce Markets," Discussion Papers Series, Department of Economics, Tufts University 0114, Department of Economics, Tufts University. [Downloadable!]
  4. João Amaro de Matos & Pedro Barros, 2004. "Social Norms and the Paradox of Elections’ Turnout," Public Choice, Springer, vol. 121(1), pages 239-255, October. [Downloadable!] (restricted)
  5. Yannis M. Ioannides, 2003. "Complexity and Organizational Architecture," Discussion Papers Series, Department of Economics, Tufts University 0313, Department of Economics, Tufts University. [Downloadable!]
  6. Jan K. Brueckner & Oleg Smirnov, 2006. "Social Networks and the Convergence of Population Attributes: A Generalization," Working Papers 050630, University of California-Irvine, Department of Economics. [Downloadable!]
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