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Contribution Details

Type Working Paper
Scope Discipline-based scholarship
Title Diffusion of behavior in dynamic networks
Organization Unit
  • Michael D König
  • English
Institution University of Zurich
Series Name Working paper series / Department of Economics
Number 222
ISSN 1664-7041
Number of Pages 19
Date 2017
Abstract Text We analyze binary choice models in communication networks, in which both, the formation of links in the network as well as the action choices are endogenous. We provide a complete characterization of the equilibrium action choices and networks, where agents choose their strategies – actions and links – according to a perturbed best response update rule. We show that a threshold exists in the linking cost and the conformity parameter, giving rise to either a sparse or a densely connected communication network. Moreover, we show how the theoretical model can be efficiently estimated using cross sectional data on agents choices and their network of interactions.
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Keywords Diffusion, technology adoption, networks, riots, protests, Arab spring, Verbreitung, Innovationsbereitschaft, Aufstand, Arabischer Frühling, Entscheidungsmodell, Netzwerk, Verbreitung, Innovationsbereitschaft, Aufstand, Arabischer Frühling, Entscheidungsmodell
Additional Information Revised version