Networks Formation to Assist Decision Making
41 Pages Posted: 1 May 2016
Date Written: April 29, 2016
This paper examines network formation among a connected population with a preference for conformity and leadership. Agents build stable personal relationships to achieve coordinated actions. The network serves as a repository of collective experiences so that cooperation can emerge from simple, myopic, self-serving adaptation to recent events despite the competing impulses of conformity and leadership and despite limiting individuals to only local information. Computational analysis reveals how behavioral tendencies impact network formation and identifies locally stable disequilibrium structures.
Keywords: Leader, Dynamic Network, Payoff interdependence, Social Interaction, Simulation
JEL Classification: D85, D71, C71
Suggested Citation: Suggested Citation