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Diffusion and contagion in networks with heterogeneous agents and homophily

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  • JACKSON, MATTHEW O.
  • LÓPEZ-PINTADO, DUNIA

Abstract

We study the diffusion of an idea, a product, a disease, a cultural fad, or a technology among agents in a social network that exhibits segregation or homophily (the tendency of agents to associate with others similar to themselves). Individuals are distinguished by their types—e.g., race, gender, age, wealth, religion, profession—which, together with biased interaction patterns, induce heterogeneous rates of adoption or infection. We identify the conditions under which a behavior or disease diffuses and becomes persistent in the population. These conditions relate to the level of homophily in a society and the underlying proclivities of various types for adoption or infection. In particular, we show that homophily can facilitate diffusion from a small initial seed of adopters.

Suggested Citation

  • Jackson, Matthew O. & López-Pintado, Dunia, 2013. "Diffusion and contagion in networks with heterogeneous agents and homophily," Network Science, Cambridge University Press, vol. 1(1), pages 49-67, April.
    • Handle: RePEc:cup:netsci:v:1:y:2013:i:01:p:49-67_00
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    References listed on IDEAS

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    1. Jackson Matthew O. & Rogers Brian W., 2007. "Relating Network Structure to Diffusion Properties through Stochastic Dominance," The B.E. Journal of Theoretical Economics, De Gruyter, vol. 7(1), pages 1-16, February.
    2. Andrea Galeotti & Sanjeev Goyal & Matthew O. Jackson & Fernando Vega-Redondo & Leeat Yariv, 2010. "Network Games," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 77(1), pages 218-244.
    3. Sergio Currarini & Matthew O. Jackson & Paolo Pin, 2009. "An Economic Model of Friendship: Homophily, Minorities, and Segregation," Econometrica, Econometric Society, vol. 77(4), pages 1003-1045, July.
    4. Banerjee, Abhijit & Jackson, Matthew O. & Duflo, Esther & Chandrasekhar, Arun G., 2012. "The Diffusion of Microfinance," CEPR Discussion Papers 8770, C.E.P.R. Discussion Papers.
    5. López-Pintado, Dunia, 2008. "Diffusion in complex social networks," Games and Economic Behavior, Elsevier, vol. 62(2), pages 573-590, March.
    6. Dunia López-Pintado, 2006. "Contagion and coordination in random networks," International Journal of Game Theory, Springer;Game Theory Society, vol. 34(3), pages 371-381, October.
    7. de Martí Beltran, Joan, 2009. "Matthew O. Jackson, Social and Economic Networks , Princeton University Press (2008)," Regional Science and Urban Economics, Elsevier, vol. 39(5), pages 644-645, September.
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    More about this item

    JEL classification:

    • D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • C70 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - General
    • C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games
    • L15 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Information and Product Quality
    • C45 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Neural Networks and Related Topics

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