The Effects of Information and Interactions on Contagion Processes

Simon Angus () and Virginie Masson

No 2010-12, School of Economics and Public Policy Working Papers from University of Adelaide, School of Economics and Public Policy

Abstract: The network literature commonly neglects the importance of a clear distinction between interactions and information exchanges. Although convenient, this oversight is not innocuous and may lead to erroneous conclusions when looking at mechanisms such as contagion processes. We use simulation methods and conduct a systematic analysis of the implications of such omission. We show that the lack of distinction between information and interaction structures is not without consequences. More precisely, when agents use a myopic best response, only information exchanges matter and interactions can be ignored. With imitation however, both information and interactions play important yet different roles in contagion.

Keywords: contagion; networks; coordination games; scale-free; small-worlds; best response; imitation (search for similar items in EconPapers)
JEL-codes: C73 D85 (search for similar items in EconPapers)
Pages: 31 pages
Date: 2010-06
New Economics Papers: this item is included in nep-gth, nep-ict and nep-soc
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:adl:wpaper:2010-12

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