Diffusion Games

46 Pages Posted: 2 Jul 2015 Last revised: 31 Jul 2019

See all articles by Evan Sadler

Evan Sadler

Columbia University, Graduate School of Arts and Sciences, Department of Economics

Date Written: July 26, 2019

Abstract

Behaviors and information often spread via person-to-person diffusion. This paper highlights how diffusion processes can facilitate coordination. I study contagion in a discrete network with Bayesian players. In addition to characterizing the extent and rate of adoption, we uncover a new effect: when large cascades are possible in equilibrium, exposure conveys information about a player's network position. This effect underscores a novel tradeoff in the design of marketing campaigns, suggesting conditions under which word-of-mouth is relatively more effective. A generalization of the model to multi-type networks suggests a new approach to targeted seeding.

Keywords: Networks, Diffusion, Configuration Model, Branching Process, Mean-Field, Viral

Suggested Citation

Sadler, Evan, Diffusion Games (July 26, 2019). Available at SSRN: https://ssrn.com/abstract=2624865 or http://dx.doi.org/10.2139/ssrn.2624865

Evan Sadler (Contact Author)

Columbia University, Graduate School of Arts and Sciences, Department of Economics ( email )

420 W. 118th Street
New York, NY 10027
United States

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