IDEAS home Printed from https://ideas.repec.org/a/eee/gamebe/v150y2025icp312-333.html

Computing agents' reputation within a network

Author

Listed:
  • Grigis, Federico
  • Ortobelli Lozza, Sergio
  • Vitali, Sebastiano

Abstract

We propose a model of information transmission and reputation building within a social network that exploits portfolio theory and option structures. The network aims to estimate an unknown parameter through multiple communication rounds. At every communication round, estimates of different agents' abilities are shared, avoiding the repetition of information. These estimates are interpreted as financial assets driven by a compound Poisson process. After every communication round, agents construct a fictitious portfolio of options whose underlying is the vector of shared estimates. The portfolio's weights are exploited to aggregate the information received in the communication round. Sufficient conditions for reaching consensus or polarization are provided.

Suggested Citation

  • Grigis, Federico & Ortobelli Lozza, Sergio & Vitali, Sebastiano, 2025. "Computing agents' reputation within a network," Games and Economic Behavior, Elsevier, vol. 150(C), pages 312-333.
    • Handle: RePEc:eee:gamebe:v:150:y:2025:i:c:p:312-333
    DOI: 10.1016/j.geb.2025.01.002
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0899825625000041
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.geb.2025.01.002?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    1. Ruben Enikolopov & Maria Petrova & Ekaterina Zhuravskaya, 2011. "Media and Political Persuasion: Evidence from Russia," American Economic Review, American Economic Association, vol. 101(7), pages 3253-3285, December.
    2. Brandts, Jordi & Giritligil, Ayça Ebru & Weber, Roberto A., 2015. "An experimental study of persuasion bias and social influence in networks," European Economic Review, Elsevier, vol. 80(C), pages 214-229.
    3. repec:bla:jfinan:v:59:y:2004:i:1:p:137-163 is not listed on IDEAS
    4. Peter M. DeMarzo & Dimitri Vayanos & Jeffrey Zwiebel, 2003. "Persuasion Bias, Social Influence, and Unidimensional Opinions," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 118(3), pages 909-968.
    5. Rapanos, Theodoros, 2023. "What makes an opinion leader: Expertise vs popularity," Games and Economic Behavior, Elsevier, vol. 138(C), pages 355-372.
    6. Isabel Melguizo, 2019. "Homophily and the Persistence of Disagreement," The Economic Journal, Royal Economic Society, vol. 129(619), pages 1400-1424.
    7. Corazzini, Luca & Pavesi, Filippo & Petrovich, Beatrice & Stanca, Luca, 2012. "Influential listeners: An experiment on persuasion bias in social networks," European Economic Review, Elsevier, vol. 56(6), pages 1276-1288.
    8. Guglielmo Barone & Francesco D'Acunto & Gaia Narciso, 2015. "Telecracy: Testing for Channels of Persuasion," American Economic Journal: Economic Policy, American Economic Association, vol. 7(2), pages 30-60, May.
    9. Rainer Hegselmann & Ulrich Krause, 2002. "Opinion Dynamics and Bounded Confidence Models, Analysis and Simulation," Journal of Artificial Societies and Social Simulation, Journal of Artificial Societies and Social Simulation, vol. 5(3), pages 1-2.
    10. Benjamin Golub & Matthew O. Jackson, 2010. "Naïve Learning in Social Networks and the Wisdom of Crowds," American Economic Journal: Microeconomics, American Economic Association, vol. 2(1), pages 112-149, February.
    11. Harry Markowitz, 1952. "Portfolio Selection," Journal of Finance, American Finance Association, vol. 7(1), pages 77-91, March.
    12. Green, Richard C & Hollifield, Burton, 1992. "When Will Mean-Variance Efficient Portfolios Be Well Diversified?," Journal of Finance, American Finance Association, vol. 47(5), pages 1785-1809, December.
    13. Polanski, Arnold & Vega-Redondo, Fernando, 2023. "Homophily and influence," Journal of Economic Theory, Elsevier, vol. 207(C).
    14. Gregory J. Martin & Ali Yurukoglu, 2017. "Bias in Cable News: Persuasion and Polarization," American Economic Review, American Economic Association, vol. 107(9), pages 2565-2599, September.
    15. Best, Michael J. & Grauer, Robert R., 1992. "Positively Weighted Minimum-Variance Portfolios and the Structure of Asset Expected Returns," Journal of Financial and Quantitative Analysis, Cambridge University Press, vol. 27(4), pages 513-537, December.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Rapanos, Theodoros, 2023. "What makes an opinion leader: Expertise vs popularity," Games and Economic Behavior, Elsevier, vol. 138(C), pages 355-372.
    2. Foerster, Manuel, 2018. "Finite languages, persuasion bias, and opinion fluctuations," Journal of Economic Behavior & Organization, Elsevier, vol. 149(C), pages 46-57.
    3. Eger, Steffen, 2016. "Opinion dynamics and wisdom under out-group discrimination," Mathematical Social Sciences, Elsevier, vol. 80(C), pages 97-107.
    4. Battiston, Pietro & Stanca, Luca, 2015. "Boundedly rational opinion dynamics in social networks: Does indegree matter?," Journal of Economic Behavior & Organization, Elsevier, vol. 119(C), pages 400-421.
    5. Berno Buechel & Stefan Klößner & Martin Lochmüller & Heiko Rauhut, 2020. "The strength of weak leaders: an experiment on social influence and social learning in teams," Experimental Economics, Springer;Economic Science Association, vol. 23(2), pages 259-293, June.
    6. Hai-Bo Hu & Cang-Hai Li & Qing-Ying Miao, 2017. "Opinion Diffusion On Multilayer Social Networks," Advances in Complex Systems (ACS), World Scientific Publishing Co. Pte. Ltd., vol. 20(06n07), pages 1-25, September.
    7. Isabel Melguizo, 2019. "Homophily and the Persistence of Disagreement," The Economic Journal, Royal Economic Society, vol. 129(619), pages 1400-1424.
    8. Christos Mavridis & Nikolas Tsakas, 2021. "Social Capital, Communication Channels and Opinion Formation," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 56(4), pages 635-678, May.
    9. Buechel, Berno & Hellmann, Tim & Klößner, Stefan, 2015. "Opinion dynamics and wisdom under conformity," Journal of Economic Dynamics and Control, Elsevier, vol. 52(C), pages 240-257.
    10. Alexsandros Cavgias & Raphael Corbi, Luis Meloni, Lucas M. Novaes, 2019. "EDITED DEMOCRACY: Media Manipulation and the News Coverage of Presidential Debates," Working Papers, Department of Economics 2019_17, University of São Paulo (FEA-USP).
    11. Marcel Garz & Jonna Rickardsson, 2023. "Ownership and media slant: Evidence from Swedish newspapers," Kyklos, Wiley Blackwell, vol. 76(1), pages 18-40, February.
    12. Ashani Amarasinghe & Paul A. Raschky, 2022. "Competing for Attention - The Effect of Talk Radio on Elections and Political Polarization in the US," SoDa Laboratories Working Paper Series 2022-02, Monash University, SoDa Laboratories.
    13. Azzimonti, Marina & Fernandes, Marcos, 2023. "Social media networks, fake news, and polarization," European Journal of Political Economy, Elsevier, vol. 76(C).
    14. Rusinowska, Agnieszka & Taalaibekova, Akylai, 2019. "Opinion formation and targeting when persuaders have extreme and centrist opinions," Journal of Mathematical Economics, Elsevier, vol. 84(C), pages 9-27.
    15. Bolletta, Ugo & Pin, Paolo, 2025. "Dynamic opinion updating with endogenous networks," European Economic Review, Elsevier, vol. 176(C).
    16. Fang, Aili, 2021. "The influence of communication structure on opinion dynamics in social networks with multiple true states," Applied Mathematics and Computation, Elsevier, vol. 406(C).
    17. Yan, Cheng & Zhang, Huazhu, 2017. "Mean-variance versus naïve diversification: The role of mispricing," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 48(C), pages 61-81.
    18. Polanski, Arnold & Vega-Redondo, Fernando, 2023. "Homophily and influence," Journal of Economic Theory, Elsevier, vol. 207(C).
    19. Pietro Battiston & Luca Stanca, 2014. "Boundedly Rational Opinion Dynamics in Directed Social Networks: Theory and Experimental Evidence," Working Papers 267, University of Milano-Bicocca, Department of Economics, revised Jan 2014.
    20. Matjaž Steinbacher & Mitja Steinbacher, 2019. "Opinion Formation with Imperfect Agents as an Evolutionary Process," Computational Economics, Springer;Society for Computational Economics, vol. 53(2), pages 479-505, February.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    JEL classification:

    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation
    • A14 - General Economics and Teaching - - General Economics - - - Sociology of Economics
    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:gamebe:v:150:y:2025:i:c:p:312-333. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/622836 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.