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Rumors And Social Networks

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  • Francis Bloch
  • Gabrielle Demange
  • Rachel Kranton

Abstract

This article studies the transmission of rumors in social networks. We consider a model with biased and unbiased agents. Biased agents want to enforce a specific decision and unbiased agents to match the true state. One agent learns the true state and sends a message to her neighbors, who decide whether or not to transmit it further. We characterize the perfect Bayesian equilibria of the game, show that the social network can act as a filter, and that biased agents may have an incentive to limit their number.

Suggested Citation

  • Francis Bloch & Gabrielle Demange & Rachel Kranton, 2018. "Rumors And Social Networks," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 59(2), pages 421-448, May.
    • Handle: RePEc:wly:iecrev:v:59:y:2018:i:2:p:421-448
    DOI: 10.1111/iere.12275
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