Typically, public discussions of questions of social import exhibit two important properties: they are influenced by conformity bias, and the influence of conformity is expressed via social networks. We examine how social learning on networks proceeds under the influence of conformity bias. In our model, heterogeneous agents express public opinions where those expressions are driven by the competing priorities of accuracy and of conformity to one’s peers. Agents learn, by Bayesian conditionalization, from private evidence from nature, and from the public (...) declarations of other agents. Our key findings are that networks that produce configurations of social relationships that sustain a diversity of opinions empower honest communication and reliable acquisition of true beliefs, and that the networks that do this best turn out to be those which are both less centralized and less connected. (shrink)

We show that various paradoxes can arise in a natural class of social networks. They demonstrate that more services or products may have adverse consequences for all members of the network and conversely that restricting the number of choices may be beneficial for every member of the network. These phenomena have been confirmed by a number of empirical studies. In our analysis we use a simple threshold model of social networks introduced in Apt and Markakis, and more fully in Apt (...) and Markakis. In this model the agents, influenced by their neighbours, can adopt one out of several alternatives. We identify and analyze here four types of paradoxes that can arise in these networks. These paradoxes shed light on possible inefficiencies arising when one modifies the sets of products available to the agents forming a social network or the network structure. One of the paradoxes corresponds to the well-known Braess paradox in congestion games and shows that by adding more choices to a node, the network may end up in a situation that is worse for everybody. We exhibit a dual version of this, according to which removing a product available to an agent can eventually make everybody better off. The other paradoxes that we identify show that by adding or removing a product from the choice set of an agent may lead to permanent instability. Finally, we also identify conditions under which some of these paradoxes cannot arise. (shrink)

It is widely believed that bringing parties with differing opinions together to discuss their differences will help both in securing consensus and also in ensuring that this consensus closely approximates the truth. This paper investigates this presumption using two mathematical and computer simulation models. Ultimately, these models show that increased contact can be useful in securing both consensus and truth, but it is not always beneficial in this way. This suggests one should not, without qualification, support policies which increase interpersonal (...) contact if one seeks to improve the epistemic performance of groups. (shrink)

Much of contemporary knowledge is generated by groups not single individuals. A natural question to ask is, what features make groups better or worse at generating knowledge? This paper surveys research that spans several disciplines which focuses on one aspect of epistemic communities: the way they communicate internally. This research has revealed that a wide number of different communication structures are best, but what is best in a given situation depends on particular details of the problem being confronted by the (...) group. (shrink)

Network theory is applied across the sciences to study phenomena as diverse as the spread of SARS, the topology of the cell, the structure of the Internet and job search behaviour. Underlying the study of networks is graph theory. Whether the graph represents a network of neurons, cells, friends or firms, it displays features that exclusively depend on the mathematical properties of the graph itself. However, the way in which graph theory is implemented to the modelling of networks differs significantly (...) across scientific fields. This article compares the economics variant of network theory with those of other fields. It shows how the methodology employed by economists to model networks is shaped by two explanatory desiderata: that the explanandum phenomenon is based on micro-economic foundations and that the explanation is general. (shrink)

We define balance games, which describe the formation of friendships and enmity in social networks. We show that if the agents give high priority to future profits over short term gains, all Pareto optimal strategies will eventually result in a balanced network. If, on the other hand, agents prioritize short term gains over the long term, every Nash equilibrium eventually results in a network that is stable but that might not be balanced.