Diffusion Games.

Behaviors and information often spread via person-to-person diffusion. This paper highlights how diffusion processes can facilitate coordination. I study contagion in a discrete network with Bayesian players. In addition to characterizing the extent and rate of adoption, we uncover a new effect: whe...

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Detalles Bibliográficos
Publicado en:American Economic Review Vol. 110; no. 1; pp. 225 - 271
Autor principal: Sadler, Evan
Formato: Artículo
Publicado: American Economic Association Jan2020
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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        atl: Diffusion Games.
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        au: Sadler, Evan
        affil: Columbia University
      su:
        Social networks
        Cooperation
        Diffusion processes
        Marketing strategy
        Word of mouth advertising
        Bayesian analysis
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        subj:
          Social networks
          Cooperation
          Other Individual and Family Services
          Diffusion processes
          Marketing strategy
          Word of mouth advertising
          Bayesian analysis
      ab: Behaviors and information often spread via person-to-person diffusion. This paper highlights how diffusion processes can facilitate coordination. I study contagion in a discrete network with Bayesian players. In addition to characterizing the extent and rate of adoption, we uncover a new effect: when large cascades are possible in equilibrium, exposure conveys information about a player's network position. This effect underscores a novel trade-off in the design of marketing campaigns, suggesting conditions under which word-of-mouth is relatively more effective. A generalization of the model to multi-type networks suggests a new approach to targeted seeding. (JEL D83, D85, M31, M37, Z13)
      pubtype: Academic Journal
      doctype: Article
      src: R
    language: English
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