Networks Formation to Assist Decision Making

41 Pages Posted: 1 May 2016

See all articles by David Goldbaum

David Goldbaum

University of Technology Sydney

Date Written: April 29, 2016

Abstract

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

Goldbaum, David, Networks Formation to Assist Decision Making (April 29, 2016). Available at SSRN: https://ssrn.com/abstract=2772378 or http://dx.doi.org/10.2139/ssrn.2772378

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