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Connectors and Influencers

Author

Listed:
  • Choi, S
  • Goyal, S.
  • Moisan, F.

Abstract

We study a setting in which personal acquisition of information is costly and main-taining personal contacts to share information socially is also costly. The theory pre-dicts star networks, with small groups sustaining an active hub and large groups allow-ing, in addition, for an inactive hub equilibrium. Experiments with small (8 subjects) and large (50 subjects) groups show star-like networks throughout. In small groups, behavior matches the active hub prediction. In large groups, hubs are inactive or en-gage in activity far in excess of the active hub equilibrium, depending on how much information subjects are given on their own and others' earnings. The hub’s activity level shapes relative earnings of subjects and the overall performance of the group.

Suggested Citation

  • Choi, S & Goyal, S. & Moisan, F., 2026. "Connectors and Influencers," Cambridge Working Papers in Economics 1935, Faculty of Economics, University of Cambridge.
    • Handle: RePEc:cam:camdae:1935
    Note: sg472, fm442
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    References listed on IDEAS

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    Cited by:

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    2. Hanaki, Nobuyuki & Kayaba, Yutaka & Maekawa, Jun & Matsushima, Hitoshi, 2024. "Two experiments on trading information goods in a network," Games and Economic Behavior, Elsevier, vol. 145(C), pages 1-18.
    3. Yang Sun & Wei Zhao & Junjie Zhou, 2021. "Structural Interventions in Networks," Papers 2101.12420, arXiv.org, revised Feb 2021.
    4. He, Simin & Zou, Xinlu, 2024. "Public goods provision in a network formation game," Journal of Economic Behavior & Organization, Elsevier, vol. 218(C), pages 104-131.
    5. Choi, S. & Goyal, S. & Moisan, F., 2020. "Brokerage Rents and Intermediation Networks," Cambridge Working Papers in Economics 2005, Faculty of Economics, University of Cambridge.
    6. Horváth, Gergely & Jia, Mofei, 2024. "The impact of social status on the formation of collaborative ties and effort provision: An experimental study," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 113(C).

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    More about this item

    JEL classification:

    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification

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