Networks: Learning, Cooperation and Community Norms
Sunday, Jan. 6, 2019 8:00 AM - 10:00 AM
- Chair: Matthew O. Jackson, Stanford University
Seeking Relationship Support: Strategic Network Formation and Robust Cooperation
AbstractWe study cooperation on social networks with private monitoring and communication. For arbitrary networks, we construct a class of multilateral restitution equilibria that attain high cooperation on all supported links---i.e., all links that are in triangles. These equilibria are robust to social contagion, bilaterally renegotiation proof, and invariant to players' beliefs about the network outside their local neighborhoods. In these equilibria, guilty players are not ostracized, instead they remain to sustain the stability of the cooperation network by exerting high effort for their innocent partners, and they are willing to do so because they are compensated for their effort costs. Anticipating cooperation, players in a network formation game with random opportunities to form links will strategically form a network with realistic small worlds properties, including high support but relatively low clustering.
Behavioral Communities and the Atomic Structure of Networks
AbstractWe develop a theory of `behavioral communities' and the `atomic structure' of networks. We define atoms to be groups of agents whose behaviors always match each other in a set of coordination games played on the network. This provides a microfoundation for a method of detecting communities in social and economic networks. We provide theoretical results characterizing such behavior-based communities and atomic structures and discussing their properties. We also provide an algorithm for identifying behavioral communities. We discuss applications including: detecting which attributes a society's network fractures along, a method of estimating underlying preferences by observing behavioral conventions in data, and optimally seeding diffusion processes when there are peer interactions and homophily. We illustrate the techniques with applications to high school friendship networks and rural village networks.
- D8 - Information, Knowledge, and Uncertainty
- D0 - General