Circles of Trust: Rival Information in Social Networks

Abstract

We analyze the diffusion of rival information in a social network. In our model, rational agents can share information sequentially, unconstrained by an exogenous protocol or timing. We show how to compute the set of eventually informed agents for any network, and show that it is essentially unique under altruistic preferences. The relationship between network structure and information diffusion is complex because the former shapes both the charity and confidentiality of potential senders and receivers.

Keywords: Information sharing, communication, directed altruism, trust, secrecy, network formation

JEL Classification: D83, D85