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Unstable diffusion in social networks

Author

Listed:
  • Teruyoshi Kobayashi
  • Yoshitaka Ogisu
  • Tomokatsu Onaga

Abstract

How and to what extent will new activities spread through social ties? Here, we develop a more sophisticated framework than the standard mean-field approach to describe the diffusion dynamics of multiple activities on complex networks. We show that the diffusion of multiple activities follows a saddle path and can be highly unstable. In particular, when the two activities are sufficiently substitutable, either of them would dominate the other by chance even if they are equally attractive ex ante. When such symmetry-breaking occurs, any average-based approach cannot correctly calculate the Nash equilibrium - the steady state of an actual diffusion process.

Suggested Citation

  • Teruyoshi Kobayashi & Yoshitaka Ogisu & Tomokatsu Onaga, 2021. "Unstable diffusion in social networks," Papers 2109.14560, arXiv.org.
  • Handle: RePEc:arx:papers:2109.14560
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    References listed on IDEAS

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    More about this item

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • 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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