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Imitating the Most Successful Neighbor in Social Networks

Author

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  • Tsakas Nikolas

    (Department of Economics, Universidad Carlos III de Madrid, Calle Madrid 126, 28903, Getafe, Spain)

Abstract

We study a model of observational learning in a set of agents who are connected through a social network. The agents face identical decision problems under uncertainty and update their choices myopically, imitating the choice of their most successful neighbor. We show that in finite networks, regardless of the network structure, the population converges to a monomorphic steady state, i.e., one at which every agent chooses the same action, and it cannot be predicted which this action will be. In arbitrarily large networks with bounded neighborhoods, an action is diffused to the whole population either if it is the only one initially chosen by a non-negligible share of the population, or if the payoffs satisfy a sufficient condition. Without the assumption of bounded neighborhoods, (i) an action can survive even if only one agent chooses it initially, and (ii) there may exist steady states that are not monomorphic.

Suggested Citation

  • Tsakas Nikolas, 2014. "Imitating the Most Successful Neighbor in Social Networks," Review of Network Economics, De Gruyter, vol. 12(4), pages 403-435, February.
    • Handle: RePEc:bpj:rneart:v:12:y:2014:i:4:p:33:n:4
    DOI: 10.1515/rne-2013-0119
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    Cited by:

    1. Tsakas, Nikolas, 2017. "Diffusion by imitation: The importance of targeting agents," Journal of Economic Behavior & Organization, Elsevier, vol. 139(C), pages 118-151.
    2. Nikolas Tsakas, 2014. "Optimal influence under observational learning," Gecomplexity Discussion Paper Series 4, Action IS1104 "The EU in the new complex geography of economic systems: models, tools and policy evaluation", revised Nov 2014.
    3. Nicola Campigotto, 2021. "Pairwise imitation and evolution of the social contract," Journal of Evolutionary Economics, Springer, vol. 31(4), pages 1333-1354, September.

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    More about this item

    Keywords

    diffusion; imitate-the-best; imitation; observational learning; social networks;
    All these keywords.

    JEL classification:

    • D03 - Microeconomics - - General - - - Behavioral Microeconomics: Underlying Principles
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation

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