Knowledge Diffusion Through Networks

58 Pages Posted: 15 Jan 2020

See all articles by Treb Allen

Treb Allen

Dartmouth College

Kamran Bilir

University of Wisconsin - Madison - Department of Economics

Zhang Chen

Princeton University

Christopher Tonetti

Stanford University

Date Written: December 20, 2019

Abstract

How do geography and other barriers to the free flow of information shape the rate of knowledge diffusion? To address this question, we develop an empirical model of product discrete choice with Bayesian learning on a social network. Estimating this model using monthly data on the cholesterol-drug prescription decisions of over 50,000 U.S. physicians during January 2000 through December 2010, we find that the evolution of product choice efficiency is highly responsive to network structure changes, particularly targeted friction reductions that strengthen the strongest bilateral links.

Suggested Citation

Allen, Treb and Bilir, Kamran and Chen, Zhang and Tonetti, Christopher, Knowledge Diffusion Through Networks (December 20, 2019). Available at SSRN: https://ssrn.com/abstract=3509835 or http://dx.doi.org/10.2139/ssrn.3509835

Treb Allen

Dartmouth College ( email )

Department of Sociology
Hanover, NH 03755
United States

Kamran Bilir (Contact Author)

University of Wisconsin - Madison - Department of Economics ( email )

Madison, WI 53706
United States

Zhang Chen

Princeton University ( email )

22 Chambers Street
Princeton, NJ 08544-0708
United States

Christopher Tonetti

Stanford University ( email )

Stanford, CA 94305
United States

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