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Control and spread of contagion in networks with global effects

Author

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  • John Higgins

    (Department of Economics, University of Wisconsin, Madison, WI 53706, USA)

  • Tarun Sabarwal

    (Department of Economics, University of Kansas, Lawrence, KS 66045, USA)

Abstract

We study proliferation of an action in binary action network coordination games that are generalized to include global effects. This captures important aspects of proliferation of a particular action or narrative in online social networks, providing a basis to understand their impact on societal outcomes. Our model naturally captures complementarities among starting sets, network resilience, and global effects, and highlights interdependence in channels through which contagion spreads. We present new, natural, and computationally tractable algorithms to define and compute equilibrium objects that facilitate the general study of contagion in networks and prove their theoretical properties. Our algorithms are easy to implement and help to quantify relationships previously inaccessible due to computational intractability. Using these algorithms, we study the spread of contagion in scale-free networks with 1,000 players using millions of Monte Carlo simulations. Our analysis provides quantitative and qualitative insight into the design of policies to control or spread contagion in networks. The scope of application is enlarged given the many other situations across different fields that may be modeled using this framework.

Suggested Citation

  • John Higgins & Tarun Sabarwal, 2022. "Control and spread of contagion in networks with global effects," WORKING PAPERS SERIES IN THEORETICAL AND APPLIED ECONOMICS 202211, University of Kansas, Department of Economics.
  • Handle: RePEc:kan:wpaper:202211
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    File URL: http://www2.ku.edu/~kuwpaper/2022Papers/202211.pdf
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    References listed on IDEAS

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    More about this item

    Keywords

    Network games; coordination games; contagion; algorithmic computation;
    All these keywords.

    JEL classification:

    • C62 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Existence and Stability Conditions of Equilibrium
    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games

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