Conformity and Influence
54 Pages Posted: 14 Apr 2016
Date Written: March 28, 2016
To better understand trends, this paper models the behavior of decision-makers seeking conformity and influence in a connected population. Link formation is one-sided with information flowing from the target to the link's originator. A premium for leading ensures that a link's target benefits more from the link than its originator, and yet a leader serves the population by coordinating decisions. The desire for conformity drives the population to organize into a single hub with the leader at the center. Certain conditions support multiple leader structures as Nash as well. A strong desire to influence produces an equilibrium with an unlinked subpopulation.
Keywords: Opinion leadership, Social networks, Conformity, Non-cooperative games
JEL Classification: C72, D83, D85
Suggested Citation: Suggested Citation