CREDIBILITY AND STRATEGIC LEARNING IN NETWORKS |
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| Authors: | Kalyan Chatterjee Bhaskar Dutta |
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| Affiliation: | The Pennsylvania State University, U.S.A |
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| Abstract: | We analyze a model of diffusion in a fixed, finite connected network. There is an interested party that knows the quality of the product being propagated and chooses an implant in the network to influence other agents to buy. Agents are either “innovators,” who adopt immediately, or rational. Rational consumers buy if buying instead of waiting maximizes expected utility. We consider the conditions on the network under which optimal diffusion of the good product with probability 1 is a perfect Bayes equilibrium. |
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