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Contagion and the Emergence of Convention in Small Worlds

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  • Edward Cartwright

Abstract

We model a simple dynamic process in which boundedly rational agents learn through their interactions with others. Of interest is to study the process of contagion where by one action 'spreads throughout the population' and becomes conventional. We vary the network of player interaction between a regular lattice and a random network allowing us to model contagion in small world networks. Through simulation results we highlight the importance of network structure on both the possibility of contagion and the rate of contagion.

Suggested Citation

  • Edward Cartwright, 2004. "Contagion and the Emergence of Convention in Small Worlds," Studies in Economics 0414, School of Economics, University of Kent.
    • Handle: RePEc:ukc:ukcedp:0414
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    File URL: https://www.kent.ac.uk/economics/repec/0414.pdf
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    References listed on IDEAS

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    More about this item

    Keywords

    Best reply; risk dominant; contagion; small world;
    All these keywords.

    JEL classification:

    • C70 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - General
    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • C62 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Existence and Stability Conditions of Equilibrium

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