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A Laboratory Experiment of Knowledge Diffusion Dynamics

  • Piergiuseppe Morone

    (University of Rome 'La Sapienza')

  • Richard Taylor

    (Centre for Policy Modelling, Manchester Metropolitan University Business School)

This paper aims to study, by means of a laboratory experiment and a simulation model, some of the mechanisms which dominate the phenomenon of knowledge diffusion in the process that is called ‘interactive learning’. We examine how knowledge spreads in different networks in which agents interact by word of mouth. We define a regular network, a randomly generated network and a small world network structured as graphs consisting of agents (vertices) and connections (edges), situated on a wrapped grid forming a lattice. The target of the paper is to identify the key factors which affect the speed and the distribution of knowledge diffusion. We will show how these factors can be classified as follow: (1) learning strategies adopted by heterogeneous agents; (2) network architecture within which the interaction takes place; (3) geographical distribution of agents and their relative initial levels of knowledge. We shall also attempt to single out the relative effect of each of the above factors.

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File URL: http://econwpa.repec.org/eps/exp/papers/0407/0407004.pdf
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Paper provided by EconWPA in its series Experimental with number 0407004.

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Length: 20 pages
Date of creation: 20 Jul 2004
Date of revision:
Handle: RePEc:wpa:wuwpex:0407004
Note: Type of Document - pdf; pages: 20
Contact details of provider: Web page: http://econwpa.repec.org

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  1. G. Ellison & D. Fudenberg, 2010. "Rules of Thumb for Social Learning," Levine's Working Paper Archive 435, David K. Levine.
  2. Cowan Robin & Jonard Nicolas, 1999. "Network Structure and the Diffusion of Knowledge," Research Memorandum 026, Maastricht University, Maastricht Economic Research Institute on Innovation and Technology (MERIT).
  3. Glen Ellison, 2010. "Learning, Local Interaction, and Coordination," Levine's Working Paper Archive 391, David K. Levine.
  4. Bala, V. & Goyal, S., 1995. "Learning from Neighbors," Econometric Institute Research Papers EI 9549-/A, Erasmus University Rotterdam, Erasmus School of Economics (ESE), Econometric Institute.
  5. Jovanovic, Boyan & Rob, Rafael, 1989. "The Growth and Diffusion of Knowledge," Review of Economic Studies, Wiley Blackwell, vol. 56(4), pages 569-82, October.
  6. Piergiuseppe Morone & Richard Taylor, 2004. "Small World Dynamics and The Process of Knowledge Diffusion: The Case of The Metropolitan Area of Greater Santiago De Chile," Journal of Artificial Societies and Social Simulation, Journal of Artificial Societies and Social Simulation, vol. 7(2), pages 5.
  7. Anderlini, Luca & Ianni, Antonella, 1996. "Path Dependence and Learning from Neighbors," Games and Economic Behavior, Elsevier, vol. 13(2), pages 141-177, April.
  8. Silverberg, Gerald & Dosi, Giovanni & Orsenigo, Luigi, 1988. "Innovation, Diversity and Diffusion: A Self-organisation Model," Economic Journal, Royal Economic Society, vol. 98(393), pages 1032-54, December.
  9. Glaeser, Edward L & Sacerdote, Bruce & Scheinkman, Jose A, 1996. "Crime and Social Interactions," The Quarterly Journal of Economics, MIT Press, vol. 111(2), pages 507-48, May.
  10. Ellison, Glenn, 2000. "Basins of Attraction, Long-Run Stochastic Stability, and the Speed of Step-by-Step Evolution," Review of Economic Studies, Wiley Blackwell, vol. 67(1), pages 17-45, January.
  11. Daron Acemoglu & Joshua Angrist, 1999. "How Large are the Social Returns to Education? Evidence from Compulsory Schooling Laws," NBER Working Papers 7444, National Bureau of Economic Research, Inc.
  12. Benabou, Roland, 1993. "Workings of a City: Location, Education, and Production," The Quarterly Journal of Economics, MIT Press, vol. 108(3), pages 619-52, August.
  13. George A. Akerlof, 1997. "Social Distance and Social Decisions," Econometrica, Econometric Society, vol. 65(5), pages 1005-1028, September.
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  15. Berninghaus, Siegfried K. & Schwalbe, Ulrich, 1996. "Evolution, interaction, and Nash equilibria," Journal of Economic Behavior & Organization, Elsevier, vol. 29(1), pages 57-85, January.
  16. Brock,W.A. & Durlauf,S.N., 2000. "Discrete choice with social interactions," Working papers 7, Wisconsin Madison - Social Systems.
  17. Bala, Venkatesh & Goyal, Sanjeev, 1995. "A Theory of Learning with Heterogeneous Agents," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 36(2), pages 303-23, May.
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