IDEAS home Printed from https://ideas.repec.org/p/ags/uwarer/270752.html
   My bibliography  Save this paper

Credibility and Strategic Learning in Networks

Author

Listed:
  • Chatterjee, Kalyan
  • Dutta, Bhaskar

Abstract

This paper studies a model of diffusion in a fixed, finite connected network. There is an interested party that knows the quality of the product or idea being propagated and chooses an implant in the network to influence other agents to buy or adopt. Agents are either “innovators”, who adopt immediately, or rational. Rational consumers buy if buying rather than waiting maximizes expected utility. We consider the conditions on the network under which efficient diffusion of the good product with probability one is a perfect Bayes equilibrium. Centrality measures and the structure of the entire network are both important. We also discuss various inefficient equilibria.

Suggested Citation

  • Chatterjee, Kalyan & Dutta, Bhaskar, 2011. "Credibility and Strategic Learning in Networks," Economic Research Papers 270752, University of Warwick - Department of Economics.
  • Handle: RePEc:ags:uwarer:270752
    DOI: 10.22004/ag.econ.270752
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/270752/files/twerp_972.pdf
    Download Restriction: no

    File URL: https://ageconsearch.umn.edu/record/270752/files/twerp_972.pdf?subformat=pdfa
    Download Restriction: no

    Other versions of this item:

    References listed on IDEAS

    as
    1. Ellison, Glenn, 1993. "Learning, Local Interaction, and Coordination," Econometrica, Econometric Society, vol. 61(5), pages 1047-1071, September.
    2. Andrea Galeotti & Sanjeev Goyal, 2009. "Influencing the influencers: a theory of strategic diffusion," RAND Journal of Economics, RAND Corporation, vol. 40(3), pages 509-532, September.
    3. Venkatesh Bala & Sanjeev Goyal, 1998. "Learning from Neighbours," Review of Economic Studies, Oxford University Press, vol. 65(3), pages 595-621.
    4. Timothy G. Conley & Christopher R. Udry, 2010. "Learning about a New Technology: Pineapple in Ghana," American Economic Review, American Economic Association, vol. 100(1), pages 35-69, March.
    5. Munshi, Kaivan, 2004. "Social learning in a heterogeneous population: technology diffusion in the Indian Green Revolution," Journal of Development Economics, Elsevier, vol. 73(1), pages 185-213, February.
    6. Goyal, Sanjeev & Galeotti, Andrea, 2007. "A Theory of Strategic Diffusion," Coalition Theory Network Working Papers 9096, Fondazione Eni Enrico Mattei (FEEM).
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Michel Grabisch & Agnieszka Rusinowska, 2020. "A Survey on Nonstrategic Models of Opinion Dynamics," Games, MDPI, Open Access Journal, vol. 11(4), pages 1-29, December.
    2. Tsakas, Nikolas, 2017. "Diffusion by imitation: The importance of targeting agents," Journal of Economic Behavior & Organization, Elsevier, vol. 139(C), pages 118-151.
    3. Erbao Cao & He Li, 2020. "Group buying and consumer referral on a social network," Electronic Commerce Research, Springer, vol. 20(1), pages 21-52, March.
    4. Kimberley Ann Scharf, 2013. "Private Provision of Public Goods and Information Diffusion in Social Groups," CESifo Working Paper Series 4492, CESifo.

    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. Tsakas, Nikolas, 2017. "Diffusion by imitation: The importance of targeting agents," Journal of Economic Behavior & Organization, Elsevier, vol. 139(C), pages 118-151.
    2. Förster, Manuel & Grabisch, Michel & Rusinowska, Agnieszka, 2013. "Anonymous social influence," Games and Economic Behavior, Elsevier, vol. 82(C), pages 621-635.
    3. 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.
    4. Manuel Förster & Michel Grabisch & Agnieszka Rusinowska, 2012. "Ordered Weighted Averaging in Social Networks," Documents de travail du Centre d'Economie de la Sorbonne 12056, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne.
    5. Grabisch, Michel & Rusinowska, Agnieszka, 2013. "A model of influence based on aggregation functions," Mathematical Social Sciences, Elsevier, vol. 66(3), pages 316-330.
    6. Nikolas Tsakas, 2014. "Optimal influence under observational learning," Gecomplexity Discussion Paper Series 4, Action IS1104 "The EU in the new complex geography of economic systems: models, tools and policy evaluation", revised Nov 2014.
    7. Xiong, Hang & Payne, Diane & Kinsella, Stephen, 2016. "Peer effects in the diffusion of innovations: Theory and simulation," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 63(C), pages 1-13.
    8. Jackson, Matthew O. & Zenou, Yves, 2015. "Games on Networks," Handbook of Game Theory with Economic Applications,, Elsevier.
    9. Sadler, Evan, 2020. "Innovation adoption and collective experimentation," Games and Economic Behavior, Elsevier, vol. 120(C), pages 121-131.
    10. Galeotti, Andrea & Goyal, Sanjeev, 2007. "A Theory of Strategic Diffusion," Economics Discussion Papers 2983, University of Essex, Department of Economics.
    11. Goyal, Sanjeev & Galeotti, Andrea, 2007. "A Theory of Strategic Diffusion," Coalition Theory Network Working Papers 9096, Fondazione Eni Enrico Mattei (FEEM).
    12. H. Peyton Young, 2009. "Innovation Diffusion in Heterogeneous Populations: Contagion, Social Influence, and Social Learning," American Economic Review, American Economic Association, vol. 99(5), pages 1899-1924, December.
    13. A. Stefano Caria & Marcel Fafchamps, 2015. "Can Farmers Create Efficient Information Networks? Experimental Evidence from Rural India," CSAE Working Paper Series 2015-07, Centre for the Study of African Economies, University of Oxford.
    14. Junichi Yamasaki, 2017. "Railroads, Technology Adoption, and Modern Economic Development: Evidence from Japan," ISER Discussion Paper 1000, Institute of Social and Economic Research, Osaka University.
    15. Vaiknoras, Kate A. & Larochelle, Catherine & Birol, Ekin & Asare-Marfo, Dorene & Herrington, Caitlin, 2017. "The Roles of Formal and Informal Delivery Approaches in Achieving Fast and Sustained Adoption of Biofortified Crops: Learnings from the Iron Bean Delivery Approaches in Rwanda," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 258288, Agricultural and Applied Economics Association.
    16. Andrea Galeotti & Brian W. Rogers, 2013. "Strategic Immunization and Group Structure," American Economic Journal: Microeconomics, American Economic Association, vol. 5(2), pages 1-32, May.
    17. Mekonnen, Daniel Ayalew & Gerber, Nicolas & Matz, Julia Anna, 2018. "Gendered Social Networks, Agricultural Innovations, and Farm Productivity in Ethiopia," World Development, Elsevier, vol. 105(C), pages 321-335.
    18. Raphaël Soubeyran, 2019. "Technology adoption and pro-social preferences," CEE-M Working Papers halshs-02291905, CEE-M, Universtiy of Montpellier, CNRS, INRA, Montpellier SupAgro.
    19. Feng, Yao, 2011. "Local spillovers and learning from neighbors: Evidence from durable adoptions in rural China," MPRA Paper 33924, University Library of Munich, Germany.
    20. Fishman, Arthur & Fishman, Ram & Gneezy, Uri, 2019. "A tale of two food stands: Observational learning in the field," Journal of Economic Behavior & Organization, Elsevier, vol. 159(C), pages 101-108.

    More about this item

    Keywords

    Financial Economics;

    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:ags:uwarer:270752. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search). General contact details of provider: https://warwick.ac.uk/fac/soc/economics/research/workingpapers/ .

    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 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.