American Economic Journal:
Microeconomics
ISSN 1945-7669 (Print) | ISSN 1945-7685 (Online)
Competing Diffusions in a Social Network
American Economic Journal: Microeconomics
(pp. 415–56)
Abstract
We develop a model of competing diffusions of goods on a social network. There are two types of goods and individuals: mass-market and niche-market. There is a unique stable steady state, and the adoption of a mass-market good is greater than its population share. Greater connectivity and homophily will concurrently increase the prevalence of niche-market goods. If there is a strategic agent who wants to promote a niche good, she will invest more in influencing activities than one promoting mass-market goods. When individuals choose their degree of homophily, niche-market individuals exhibit greater homophily than mass-market ones.Citation
Campbell, Arthur, C. Matthew Leister, Philip Ushchev, and Yves Zenou. 2026. "Competing Diffusions in a Social Network." American Economic Journal: Microeconomics 18 (4): 415–56. DOI: 10.1257/mic.20240293Additional Materials
JEL Classification
- D83 Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
- D85 Network Formation and Analysis: Theory
- L86 Information and Internet Services; Computer Software
- Z13 Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification