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One of the fundamental principles driving diversity or homogeneity in domains such as cultural differentiation, political affiliation, and product adoption is the tension between two forces: influence (the tendency of people to become…

Computer Science and Game Theory · Computer Science 2015-10-28 David Kempe , Jon Kleinberg , Sigal Oren , Aleksandrs Slivkins

Why do some national music markets sustain a rich musical diversity whereas others converge on mostly formulaic output? The existing models of cultural consumption (superstar economics, rational addiction, Bayesian social learning) each…

Computers and Society · Computer Science 2026-04-24 Fabio Lokwani Di Matteo , Pier Luigi Sacco

Social learning is a fundamental mechanism shaping decision-making across numerous social networks, including social trading platforms. In those platforms, investors combine traditional investing with copying the behavior of others.…

Physics and Society · Physics 2025-07-04 Bijin Joseph , Christoph Riedl , Alex Pentland , Esteban Moro

In many prediction problems, the predictive model affects the distribution of the prediction target. This phenomenon is known as performativity and is often caused by the behavior of individuals with vested interests in the outcome of the…

Machine Learning · Statistics 2024-06-03 Seamus Somerstep , Ya'acov Ritov , Yuekai Sun

This paper presents the results of computational experiments on the effects of social influence on individual and systemic behavior of situated cognitive agents in a product-consumer environment. Paired experiments were performed with…

Social and Information Networks · Computer Science 2012-04-17 Russell C. Thomas , John S. Gero

In speculative markets, risk-free profit opportunities are eliminated by traders exploiting them. Markets are therefore often described as "informationally efficient", rapidly removing predictable price changes, and leaving only residual…

Trading and Market Microstructure · Quantitative Finance 2013-10-08 Felix Patzelt , Klaus R. Pawelzik

In our digital and connected societies, the development of social networks, online shopping, and reputation systems raises the question of how individuals use social information, and how it affects their decisions. We report experiments…

"Big data" gives markets access to previously unmeasured characteristics of individual agents. Policymakers must decide whether and how to regulate the use of this data. We study how new data affects incentives for agents to exert effort in…

Theoretical Economics · Economics 2022-09-05 Annie Liang , Erik Madsen

Algorithmic predictions are increasingly informing societal resource allocations by identifying individuals for targeting. Policymakers often build these systems with the assumption that by gathering more observations on individuals, they…

Machine Learning · Computer Science 2025-03-04 Ali Shirali , Ariel Procaccia , Rediet Abebe

Individuals often navigate several options with incomplete knowledge of their own preferences. Information provisioning tools such as public rankings and personalized recommendations have become central to helping individuals make choices,…

Theoretical Economics · Economics 2025-06-05 Omar Besbes , Yash Kanoria , Akshit Kumar

Recommender systems have gained increasing attention to personalise consumer preferences. While these systems have primarily focused on applications such as advertisement recommendations (e.g., Google), personalized suggestions (e.g.,…

Information Retrieval · Computer Science 2023-12-12 Kelley Ann Yohe

We propose to study market efficiency from a computational viewpoint. Borrowing from theoretical computer science, we define a market to be \emph{efficient with respect to resources $S$} (e.g., time, memory) if no strategy using resources…

Computational Engineering, Finance, and Science · Computer Science 2009-09-01 Jasmina Hasanhodzic , Andrew W. Lo , Emanuele Viola

Market making is one of the most important aspects of algorithmic trading, and it has been studied quite extensively from a theoretical point of view. The practical implementation of so-called "optimal strategies" however suffers from the…

Trading and Market Microstructure · Quantitative Finance 2018-06-14 Xiaofei Lu , Frédéric Abergel

Content moderation is a widely used strategy to prevent the dissemination of irregular information on social media platforms. Despite extensive research on developing automated models to support decision-making in content moderation, there…

Social and Information Networks · Computer Science 2024-08-23 Wangjiaxuan Xin , Kanlun Wang , Zhe Fu , Lina Zhou

A typical viral marketing model identifies influential users in a social network to maximize a single product adoption assuming unlimited user attention, campaign budgets, and time. In reality, multiple products need campaigns, users have…

Social and Information Networks · Computer Science 2017-01-31 Nan Du , Yingyu Liang , Maria-Florina Balcan , Manuel Gomez-Rodriguez , Hongyuan Zha , Le Song

Agents often have individual goals which depend on a group's actions. If agents trust a forecast of collective action and adapt strategically, such prediction can influence outcomes non-trivially, resulting in a form of performative…

Machine Learning · Computer Science 2025-02-18 António Góis , Mehrnaz Mofakhami , Fernando P. Santos , Gauthier Gidel , Simon Lacoste-Julien

Financial models do not merely analyse markets, but actively shape them. This effect, known as performativity, describes how financial theories and the subsequent actions based on them influence market processes, by creating self-fulfilling…

Trading and Market Microstructure · Quantitative Finance 2026-02-19 Charalampos Kleitsikas , Stefanos Leonardos , Carmine Ventre

Context: Social aspects are of high importance for being successful using agile methods in software development. People are influenced by their cultural imprint, as the underlying cultural values are guiding us in how we think and act.…

Software Engineering · Computer Science 2023-11-22 Daniel Welsch , Luisa Burk , David Mötefindt , Michael Neumann

With ever-increasing amounts of online information available, modeling and predicting individual preferences-for books or articles, for example-is becoming more and more important. Good predictions enable us to improve advice to users, and…

Social and Information Networks · Computer Science 2017-02-06 Antonia Godoy-Lorite , Roger Guimera , Cristopher Moore , Marta Sales-Pardo

This paper focuses on describing the impact of policy actions on individuals' opinions in the presence of social and external influences toward proposing preliminary nudging strategies to achieve a cost-effectiveness trade-off. To this end,…

Systems and Control · Electrical Eng. & Systems 2025-02-04 Valentina Breschi , Chiara Ravazzi , Paolo Frasca , Fabrizio Dabbene , Mara Tanelli