Contagion And The Speed Of Adjustment In Small Worlds
We model a simple dynamic process in which myopic agents are matched amongst each other to play a coordination game. The network of player interaction is varied between a regular lattice and a random network allowing us to model contagion in small world networks. Weighting times for an equilibrium shift from the risk dominated to risk dominant equilibrium are shown to be smallest in small world networks.
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Volume (Year): 09 (2007)
Issue (Month): 04 ()
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