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Contagion in graphons

Author

Listed:
  • Erol, Selman
  • Parise, Francesca
  • Teytelboym, Alexander

Abstract

The analysis of threshold contagion processes in large networks is challenging. While the lack of accurate network data is often a major obstacle, finding optimal interventions is computationally intractable even in well-measured large networks. To obviate these issues we consider threshold contagion over networks sampled from a graphon—a flexible stochastic network formation model—and show that in this case the contagion outcome can be predicted by only exploiting information about the graphon. To this end, we exploit a second interpretation of graphons as graph limits to formally define a threshold contagion process on a graphon for infinite populations. We then show that contagion in large but finite sampled networks is well approximated by graphon contagion. This convergence result suggests that one can design interventions for large sampled networks by first solving the equivalent problem for an infinite population interacting according to the limiting graphon. We show that, under suitable regularity assumptions, the latter is a tractable problem and we provide analytical characterizations for the extent of contagion and for optimal seeding policies in graphons with both finite and infinite agent types.

Suggested Citation

  • Erol, Selman & Parise, Francesca & Teytelboym, Alexander, 2023. "Contagion in graphons," Journal of Economic Theory, Elsevier, vol. 211(C).
  • Handle: RePEc:eee:jetheo:v:211:y:2023:i:c:s0022053123000698
    DOI: 10.1016/j.jet.2023.105673
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    References listed on IDEAS

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    1. Daron Acemoglu & Victor Chernozhukov & Iván Werning & Michael D. Whinston, 2021. "Optimal Targeted Lockdowns in a Multigroup SIR Model," American Economic Review: Insights, American Economic Association, vol. 3(4), pages 487-502, December.
    2. Francesca Parise & Asuman Ozdaglar, 2023. "Graphon Games: A Statistical Framework for Network Games and Interventions," Econometrica, Econometric Society, vol. 91(1), pages 191-225, January.
    3. Lelarge, Marc, 2012. "Diffusion and cascading behavior in random networks," Games and Economic Behavior, Elsevier, vol. 75(2), pages 752-775.
    4. Emily Breza & Arun G. Chandrasekhar & Tyler H. McCormick & Mengjie Pan, 2020. "Using Aggregated Relational Data to Feasibly Identify Network Structure without Network Data," American Economic Review, American Economic Association, vol. 110(8), pages 2454-2484, August.
    5. Alex Chin & Dean Eckles & Johan Ugander, 2022. "Evaluating Stochastic Seeding Strategies in Networks," Management Science, INFORMS, vol. 68(3), pages 1714-1736, March.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Networks; Graphons; Contagion; Optimal seeding;
    All these keywords.

    JEL classification:

    • D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation
    • L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation

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