Topologies of social interactions

Yannis Ioannides

Economic Theory, 2006, vol. 28, issue 3, 559-584

Abstract: The paper extends the Brock-Durlauf social interactions model to richer social structures modelled with arbitrary interaction topologies and examines in detail the star, the wheel and the path. It explores Nash equilibria when agents act on the basis of expectations over, and, alternatively, actual knowledge their neighbors’ decisions. It links social interactions with econometrics of systems of simultaneous equations. The local dynamics near steady states combine spectral properties of the adjacency matrix and of the nonlinearities of reaction functions. For regular interaction topologies, adjustment exhibit relative persistence. Cyclical interaction is associated with endogenous spatial oscillations and islands of conformity. Copyright Springer-Verlag Berlin/Heidelberg 2006

Keywords: Social interactions; Dynamics; Spatial oscillations; Interactive discrete choice; Neighborhood effects; Ising model; Random fields; Random networks. (search for similar items in EconPapers)
Date: 2006
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Citations: View citations in EconPapers (30)

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Working Paper: TOPOLOGIES OF SOCIAL INTERACTIONS (2004)
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DOI: 10.1007/s00199-005-0646-1

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