Related papers: Group network effects in price competition

Social interactions determine many economic behaviors, but information on social ties does not exist in most publicly available and widely used datasets. We present results on the identification of social networks from observational panel…

Recent research has identified interactions between networks as crucial for the outcome of evolutionary games taking place on them. While the consensus is that interdependence does promote cooperation by means of organizational complexity…

We experimentally study effort provision and network formation in the linear-quadratic game characterized by positive externality and complementarity of effort choices among network neighbors. We compare experimental outcomes to the…

We show that, with indivisible goods, the existence of competitive equilibrium fundamentally depends on agents' substitution effects, not their income effects. Our Equilibrium Existence Duality allows us to transport results on the…

In many domains of life, business and management, numerous problems are addressed by small groups of individuals engaged in face-to-face discussions. While research in social psychology has a long history of studying the determinants of…

The minority model was introduced to study the competition between agents with limited information. It has the remarkable feature that, as the amount of information available increases, the collective gain made by the agents is reduced.…

Online social networks exert a powerful influence on public opinion. Adversaries weaponize these networks to manipulate discourse, underscoring the need for more resilient social networks. To this end, we investigate the impact of network…

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 many scenarios, networks emerge endogenously as cognitive agents establish links in order to exchange information. Network formation has been widely studied in economics, but only on the basis of simplistic models that assume that the…

Digital networks have profoundly transformed the ways in which individuals interact, exchange information, and establish connections, leading to the emergence of phenomena such as virality, misinformation cascades, and online polarization.…

In social learning, agents form their opinions or beliefs about certain hypotheses by exchanging local information. This work considers the recent paradigm of weak graphs, where the network is partitioned into sending and receiving…

We develop a model of social media in which users produce different types of content and choose whom to follow. Even when abstracting from algorithmic bias, linking costs shape networks and polarization. In the welfare-maximizing…

Models that provide insight into how extreme positions regarding any social phenomenon may spread in a society or at the global scale are of great current interest. A realistic model must account for the fact that globalization and internet…

We investigate a group choice problem of agents pursuing social status. We assume heterogeneous agents want to signal their private information (ability, income, patience, altruism, etc.) to others, facing tradeoff between "outside status"…

Economic models with input-output networks assume that firm or sector (unit) growth is driven by a weighted sum of trade partners' growth and an independently-drawn idiosyncratic shock. I show that the idiosyncratic risk assumption in a…

We present a novel framework to learn functions that estimate decisions of sellers and buyers simultaneously in an oligopoly market for a price-sensitive product. In this setting, the aim of the seller network is to come up with a price for…

Interactions between people are the basis on which the structure of our society arises as a complex system and, at the same time, are the starting point of any physical description of it. In the last few years, much theoretical research has…

Randomized experiments on social networks pose statistical challenges, due to the possibility of interference between units. We propose new methods for estimating attributable treatment effects in such settings. The methods do not require…

In this paper, inspired by the work of Megiddo on the formation of preferences and strategic analysis, we consider an early market model studied in the field of economic theory, in which each trader's utility may be influenced by the…

Competition between a complex system's constituents and a corresponding reward mechanism based on it have profound influence on the functioning, stability, and evolution of the system. But determining the dominance hierarchy or ranking…