Related papers: Sorting in Networks: Adversity and Structure
In many real world networks agents are initially unsure of each other's qualities and must learn about each other over time via repeated interactions. This paper is the first to provide a methodology for studying the dynamics of such…
We study the optimal pricing strategies of a monopolist selling a divisible good (service) to consumers that are embedded in a social network. A key feature of our model is that consumers experience a (positive) local network effect. In…
In Schelling's segregation model, the successive moves of agents optimizing their own locations lead to a suboptimal segregated distribution of the population, even though all agents have the same preference for mixed neighborhoods. One of…
We examine the problem of assigning plots of land to prospective buyers who prefer living next to their friends. They care not only about the plot they receive, but also about their neighbors. This externality results in a highly…
We consider any network environment in which the "best shot game" is played. This is the case where the possible actions are only two for every node (0 and 1), and the best response for a node is 1 if and only if all her neighbors play 0. A…
Previous work has shown that species interacting in an ecosystem and actors transacting in an economic context may have notable similarities in behavior. However, the specific mechanism that may underlie similarities in nature and human…
The theoretical study of social learning typically assumes that each agent's action affects only her own payoff. In this paper, I present a model in which agents' actions directly affect the payoffs of other agents. On a discrete time line,…
The characterization of large-scale structural organization of social networks is an important interdisciplinary problem. We show, by using scaling analysis and numerical computation, that the following factors are relevant for models of…
The past few years has witnessed the great success of recommender systems, which can significantly help users find relevant and interesting items for them in the information era. However, a vast class of researches in this area mainly focus…
The pervasive use of social media provides massive data about individuals' online social activities and their social relations. The building block of most existing recommendation systems is the similarity between users with social…
We study allocation problems without monetary transfers where agents have correlated types, i.e., hold private information about one another. Such peer information is relevant in various settings, including science funding, allocation of…
A model of Boolean agents competing in a market is presented where each agent bases his action on information obtained from a small group of other agents. The agents play a competitive game that rewards those in the minority. After a long…
Consider a network of agents that all want to guess the correct value of some ground truth state. In a sequential order, each agent makes its decision using a single private signal which has a constant probability of error, as well as…
Adaptation to dynamic conditions requires a certain degree of diversity. If all agents take the best current action, learning that the underlying state has changed and behavior should adapt will be slower. Diversity is harder to maintain…
We provide a strategic model of the formation of production networks that subsumes the standard general equilibrium approach. The objective of firms in our setting is to choose their supply relationships so as to maximize their profit at…
We consider a network of sellers, each selling a single product, where the graph structure represents pair-wise complementarities between products. We study how the network structure affects revenue and social welfare of equilibria of the…
We propose a model of mobile agents to construct social networks, based on a system of moving particles by keeping track of the collisions during their permanence in the system. We reproduce not only the degree distribution, clustering…
Information is a valuable asset for agents in socio-economic systems, a significant part of the information being entailed into the very network of connections between agents. The different interlinkages patterns that agents establish may,…
A planner aims to target individuals who exceed a threshold in a characteristic, such as wealth or ability. The individuals can rank their friends according to the characteristic. We study a strategy-proof mechanism for the planner to use…
Agents with different ideologies often form alliances to achieve their goals. Paradoxically, ideologically similar agents are often opponents. In this paper, ideologically heterogeneous agents choose the ideological composition of their…