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The Emergence of Local Norms in Networks

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  • Mary Burke
  • Gary Fournier

Abstract

We develop an explanation of the emergence of local norms, and the associated phenom- enon of geographical variation in behavior. Individuals are assumed to interact locally with neighbors in an environment with a network externality. Although many patterns of behavior are possible, the dispersed interactive choices of agents are shown to select behavior that is locally uniform but globally diverse. The range of applications of the theory includes regional variation in the practice of medicine, technology choice, and corruption. The framework is also useful for further developing our understanding of important phenomena like lock-in, critical thresholds, and contagion

Suggested Citation

  • Mary Burke & Gary Fournier, 2005. "The Emergence of Local Norms in Networks," Computing in Economics and Finance 2005 299, Society for Computational Economics.
    • Handle: RePEc:sce:scecf5:299
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    References listed on IDEAS

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    Cited by:

    1. Burke, Mary A. & Fournier, Gary M. & Prasad, Kislaya, 2010. "Geographic variations in a model of physician treatment choice with social interactions," Journal of Economic Behavior & Organization, Elsevier, vol. 73(3), pages 418-432, March.

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    More about this item

    Keywords

    Social norms; networks; geographical variation;
    All these keywords.

    JEL classification:

    • C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games
    • D02 - Microeconomics - - General - - - Institutions: Design, Formation, Operations, and Impact

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