Rumors and Social Networks
Why do people spread rumors? This paper studies the transmission of possibly false information---by rational agents who seek the truth. Unbiased agents earn payoffs when a collective decision is correct in that it matches the true state of the world, which is initially unknown. One agent learns the underlying state and chooses whether to send a true or false message to her friends and neighbors who then decide whether or not to transmit it further. The papers hows how a social network can serve as a filter. Agents block messages from parts of the network that contain many biased agents; the messages that circulate may be incorrect but sufficiently informative as to the correct decision.
|Date of creation:||Mar 2014|
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|Note:||View the original document on HAL open archive server: http://halshs.archives-ouvertes.fr/halshs-00966234|
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References listed on IDEAS
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- Crawford, Vincent P & Sobel, Joel, 1982.
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- Daron Acemoglu & Asuman E. Ozdaglar, 2010.
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Levine's Working Paper Archive
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- Paul R. Milgrom, 1981.
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- Paul R. Milgrom, 1979. "Good Nevs and Bad News: Representation Theorems and Applications," Discussion Papers 407R, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
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