Galeotti, Andrea and Goyal, Sanjeev (2012) Network Multipliers: The Optimality of Targeting Neighbors. Review of Network Economics, 11 (3). DOI https://doi.org/10.1515/1446-9022.1415
Galeotti, Andrea and Goyal, Sanjeev (2012) Network Multipliers: The Optimality of Targeting Neighbors. Review of Network Economics, 11 (3). DOI https://doi.org/10.1515/1446-9022.1415
Galeotti, Andrea and Goyal, Sanjeev (2012) Network Multipliers: The Optimality of Targeting Neighbors. Review of Network Economics, 11 (3). DOI https://doi.org/10.1515/1446-9022.1415
Abstract
A firm wishes to inform a community of individuals about its product. Information travels within the community because of the social interactions between individuals. We establish that social interactions appear in a firm's payoff as a network multiplier, which is increasing both in the mean and in the variance of the distribution of connections. We then show that the degree distribution of a neighbor first order dominates the degree distribution of a node; so a firm must pick the neighbor of a node rather than a node itself as the target of communication. The advantages of employing an indirect communication strategy are greater in more dispersed networks. © 2012 De Gruyter.
Item Type: | Article |
---|---|
Uncontrolled Keywords: | Social interactions; network multiplier; targeting neighbors |
Subjects: | H Social Sciences > HB Economic Theory |
Divisions: | Faculty of Social Sciences Faculty of Social Sciences > Economics, Department of |
SWORD Depositor: | Unnamed user with email elements@essex.ac.uk |
Depositing User: | Unnamed user with email elements@essex.ac.uk |
Date Deposited: | 30 Jan 2014 11:27 |
Last Modified: | 04 Dec 2024 06:17 |
URI: | http://repository.essex.ac.uk/id/eprint/8671 |