Contagion of network products in small-world networks

buir.contributor.authorİkizler, Hüseyin
dc.citation.epage809en_US
dc.citation.issueNumber4en_US
dc.citation.spage789en_US
dc.citation.volumeNumber14en_US
dc.contributor.authorİkizler, Hüseyinen_US
dc.date.accessioned2020-02-20T10:54:31Z
dc.date.available2020-02-20T10:54:31Z
dc.date.issued2019-05-20
dc.departmentDepartment of Economicsen_US
dc.description.abstractWe formulate a model in which agents embedded in an exogenous social network decide whether to adopt a new network product or not. In the theoretical part of the paper, we characterize the stochastically stable equilibria for complete networks and cycles. For an arbitrary network structure, we develop a novel graph decomposition method to characterize the set of recurrent communication states, which is a superset of stochastically stable equilibria of the adoption game presented in our model. In the simulation part, we study the contagion process of a network product in small-world networks that systematically represent social networks. We simulate a generalization of the Morris (Rev Econ Stud 67(1):57–78, 2000) Contagion model that can explain the chasm between early adopters and early majority. Our numerical analysis shows that the failure of a new network product is less likely in a highly cliquish network. In addition, the contagion process reaches to steady state faster in random networks than in highly cliquish networks. It turns out that marketers should work with mixed marketing strategies, which will result in a full contagion of a network product and faster contagion rates with a higher probability.en_US
dc.identifier.doi10.1007/s11403-019-00251-8en_US
dc.identifier.eissn1860-7128
dc.identifier.issn1860-711X
dc.identifier.urihttp://hdl.handle.net/11693/53449
dc.language.isoEnglishen_US
dc.publisherSpringeren_US
dc.relation.isversionofhttps://dx.doi.org/10.1007/s11403-019-00251-8en_US
dc.source.titleJournal of Economic Interaction and Coordinationen_US
dc.subjectSocial networken_US
dc.subjectContagionen_US
dc.subjectSimulationen_US
dc.subjectCliquish networken_US
dc.subjectRandom networken_US
dc.subjectSmall-world networken_US
dc.titleContagion of network products in small-world networksen_US
dc.typeArticleen_US
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