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A Theory of Strategic Diffusion AgEcon
Goyal, Sanjeev; Galeotti, Andrea.
The important role of friends, neighbors and colleagues in shaping individual choices has been brought out in a number of studies over the years. The presence of significant ‘local’ influence in shaping individual behavior suggests that firms, governments and developmental agencies should explicitly incorporate it in the design of their marketing and developmental strategies. This paper develops a framework for the study of optimal strategies in the presence of social interaction. We focus on the case of a single player who exerts costly effort to get a set of individuals – engaged in social interaction – to choose a certain action. Our formulation allows for different types of social interaction (ranging from sharing of information to direct adoption...
Tipo: Working or Discussion Paper Palavras-chave: Social Interaction; Seeding the Network; Word of Mouth Communication; Diffusion Strategy; Institutional and Behavioral Economics; D8; L15.
Ano: 2007 URL: http://purl.umn.edu/9096
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