Follow the Leader: Simulations on a Dynamic Social Network
David Goldbaum ()
No 15, Working Paper Series from Economics Discipline Group, UTS Business School, University of Technology, Sydney
This paper introduces a process of individual adjustment based on private local experiences and observation that allows for the emergence of a global social structure that is the equilibrium to the static follow-the-leader game of Goldbaum (2013). The setting rewards agents for being early adopters of popular products or trends. From simple, myopic, self-serving adjustment based on historic evidence by individuals emerges the the equilibrium social structure consisting of a single choice leader and a population of followers, which, in the static setting would require an unlikely degree of coordination to produce. Individual actions take place in a social context with individuals linked via one-way paths of observation. The strategy by which an agent chooses among the available options evolves over time. Different adjustment emergent processes contribute towards the understanding of the unfolding of events that generate the equilibrium structure.
Keywords: Leader; Dynamic Network; Social Interaction; Consumer Choice; Simulation (search for similar items in EconPapers)
JEL-codes: D85 D71 C71 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cmp, nep-gth and nep-soc
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Working Paper: Follow the Leader: Simulations on a Dynamic Social Network (2008)
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Persistent link: https://EconPapers.repec.org/RePEc:uts:ecowps:15
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