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Word of Mouth Advertising, Credibility and Learning in Networks

Author

Listed:
  • Chatterjee, Kalyan

    (Department of Economics, The Pennsylvania State University)

  • Dutta, Bhaskar

    (Department of Economics, University of Warwick)

Abstract

Social networks representing the pattern of social interactions - who talks to or who observes whom- play a crucial role as a medium for the spread of information, ideas, diseases, products. Someone in the population may struck with an infection or may adopt a new technology, and it can then either die out quickly or spread throughout the population, depending possibly on the location of the initial appearance, the structure of the network - for instance, how dense it is. The dynamics of adoption -the extent to which individuals are in uenced by their neighbours, the impact of "word of-mouth" communication- also plays a role in determining the speed of diffusion. Given the large range of contexts in which social learning is important, it is not surprising that researchers from various disciplines have studied processes of diffusion from a variety of perspectives.

Suggested Citation

  • Chatterjee, Kalyan & Dutta, Bhaskar, 2010. "Word of Mouth Advertising, Credibility and Learning in Networks," The Warwick Economics Research Paper Series (TWERPS) 941, University of Warwick, Department of Economics.
    • Handle: RePEc:wrk:warwec:941
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    References listed on IDEAS

    as
    1. Ellison, Glenn, 1993. "Learning, Local Interaction, and Coordination," Econometrica, Econometric Society, vol. 61(5), pages 1047-1071, September.
    2. Glenn Ellison & Drew Fudenberg, 1995. "Word-of-Mouth Communication and Social Learning," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 110(1), pages 93-125.
    3. Ellison, Glenn & Fudenberg, Drew, 1993. "Rules of Thumb for Social Learning," Journal of Political Economy, University of Chicago Press, vol. 101(4), pages 612-643, August.
    4. H. Peyton Young, 2009. "Innovation Diffusion in Heterogeneous Populations: Contagion, Social Influence, and Social Learning," American Economic Review, American Economic Association, vol. 99(5), pages 1899-1924, December.
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    Cited by:

    1. Kimberley Scharf, 2014. "Private Provision Of Public Goods And Information Diffusion In Social Groups," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 55(4), pages 1019-1042, November.
    2. Jeffry Jacob & Abdul Munasib, 2020. "Do social networks promote homeownership?," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 67(2), pages 189-230, June.

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