Adjustment and social choice
Disordered Systems and Neural Networks
2009-11-07 v1
Abstract
We discuss the influence of information contagion on the dynamics of choices in social networks of heterogeneous buyers. Starting from an inhomogeneous cellular automata model of buyers dynamics, we show that when agents try to adjust their reservation price, the tatonement process does not converge to equilibrium at some intermediate market share and that large amplitude fluctuations are actually observed. When the tatonnement dynamics is slow with respect to the contagion dynamics, large periodic oscillations reminiscent of business cycles appear.
Keywords
Cite
@article{arxiv.cond-mat/0210610,
title = {Adjustment and social choice},
author = {Gerard Weisbuch and Dietrich Stauffer},
journal= {arXiv preprint arXiv:cond-mat/0210610},
year = {2009}
}
Comments
13 pages, 6 figures