Paternalism, Cultural Transmission and Diffusion on Complex Networks

Thierry Verdier and Fabrizio Panebianco

No 10722, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: We study cultural diffusion in a complex network where the transition probabilities are determined by a cultural transmission technology with endogenous vertical transmission rates (a la Bisin and Verdier, 2001). We derive a two-way epidemic model in which both the infection and the recovery rates are endogenous and depend on the topology of the network. First, we identify a "social structure bias" in cultural transmission that determines the direction of cultural change relating the economic structure of parental socialization incentives to the social network structure. Second, we characterize two balancing conditions satisfied by the network degree distribution and the vertical transmission rate distribution to ensure the sustainability of long run cultural heterogeneity. Third, we show how paternalistic motivations for endogenous cultural transmission interact with the "social structure bias" channel and maintain steady state cultural diversity for any network structure.

Keywords: Social Networks; Diffusion; Cultural transmission; Mean-field (search for similar items in EconPapers)
JEL-codes: C73 L14 O33 (search for similar items in EconPapers)
Date: 2015-07
New Economics Papers: this item is included in nep-evo, nep-gro, nep-gth, nep-soc and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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