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Word of mouth advertising, credibility and learning in networks

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Chatterjee, Kalyan and Dutta, Bhaskar (2010) Word of mouth advertising, credibility and learning in networks. Working Paper. University of Warwick. Dept. of Economics, Coventry.

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Abstract

Social networks representing the pattern of social interactions - who talks to or who observes whom- play a crucial role as a medium for the spread of information, ideas, diseases, products. Someone in the population may be struck with an infection or may adopt a new technology, and it can then either die out quickly or spread throughout the population, depending possibly on the location of the initial appearance, the structure of the network - for instance, how dense it is. The dynamics of adoption -the extent to which individuals are in uenced by their neighbours, the impact of 'word-of-mouth' communication- also plays a role in determining the speed of diffusion. Given the large range of contexts in which social learning is important, it is not surprising that researchers from various disciplines have studied processes of diffusion from a variety of perspectives.

Item Type: Working or Discussion Paper (Working Paper)
Subjects: H Social Sciences > HF Commerce
H Social Sciences > H Social Sciences (General)
Q Science > QA Mathematics
Divisions: Faculty of Social Sciences > Economics
Library of Congress Subject Headings (LCSH): Word-of-mouth advertising, Viral marketing, Marketing -- Mathematical models, Social sciences -- Network analysis
Series Name: Warwick economics research paper series (TWERPS)
Publisher: University of Warwick. Dept. of Economics
Place of Publication: Coventry
Date: 2010
Volume: Vol.2010
Number: No.941
Status: Not Peer Reviewed
Access rights to Published version: Open Access
Funder: Human Capital Foundation
References: [1] Bala, V. and S. Goyal, (1998) \Learning from neighbours", Review of Economic Studies, 65, 3 (July), 595-621 [2] Chatterjee, K. and S.Hong Xu, (2004), `Technology Diusion by Learning from Neighbours', Adv. in Appl. Probab., 36 , no. 2, 355{376 [3] Coleman, J.S., E.Katz and H.Menzel (1966), Medical Innovation: A Diusion Study, Indianopolis, Indiana, Bobbs-Merrill. [4] Draief, Moez and Laurent Massoulie (2010), Epidemics and Rumours in Complex Networks, London Mathematical Society Lecture Notes no. 369, Cambridge University Press, Cambridge, UK. [5] Ellison, Glenn, (1993), \Learning, Local Interaction and Coordination", Econometrica, 71, 1047-1071. [6] Ellison, Glenn and Drew Fudenberg(1993), \Rules of Thumb for Social Learning", Journal of Political Economy, 101, 612-644. [7] Ellison, Glenn and Drew Fudenberg(1995), \Word-of-mouth Communication and Social Learning", Quarterly Journal of Economics, 109, 93-125. [8] Foster, A.D. and M.Rosenzweig (1995), \Learning by Doing and Learning from Others: Human Capital and Technological Change in Agriculture", Journal of Political Economy, 103, 1176-1209. [9] Galeotti, A. and S. Goyal, (2009), \In uencing the in uencers: a theory of strategic diusion", RAND Journal of Economics, , 40, 3, 509-532. [10] Goyal, S., (2005), \Learning in Networks", in G.Demange and M.Wooders (ed) Group Formation in Economics, Cambridge, Cambridge University Press. [11] Goyal, Sanjeev and Adrien Vigier (2010), \Robust networks", mimeo, University of Cambridge, Faculty of Economics. [12] Jackson, Matt and Leeat Yariv (2010), \Diusion, Strategic Interaction and Social Structure", to be published in Handbook of Social Eco- nomics, edited by J.Benhabib, A.Bisin and M. Jackson. [13] Kempe, D., Kleinberg, J., and Tardos, E. (2003), \Maximizing the Spread of In uence in a Social Network", Proceeding of the Ninth ACM SIGKDD International Conference on Knowledge Discovery and Data Mining. [14] Leskovec, J., Adamic, L.A. and Huberman B.A. (2007), \The Dynamics of Viral Marketing", ACM Transactions on the Web 1, articl 5. [15] Rogers, E. (2003), Diusion of Innovations, New York: Free Press. [16] Richardson,M., and P.Domingos (2002)\Mining Knowledge-Sharing and Sites for Viral Marketing", Proceeding of the Eighth ACM SIGKDD International Conference on Knowledge Discovery and Data Mining. [17] Silverman, G (2001), The Secrets of Word-of-Mouth Marketing: How to Trigger Exponential Sales through Runaway Word of Mouth, New York, Amacom books. [18] Conley,T and C. Udry. (2009) \Learning about a New Technology", to appear in American Economioc Review. [19] Walker, Rob, (2004) \The hidden (in plain sight) persuaders", The New York Times Sunday Magazine, December 5. [20] Young, H. Peyton (2009), \Innovation diusion in heterogeneous populations; contagion, social in uence and social learning", American Eco- nomic Review, 99, 1899-1924.
URI: http://wrap.warwick.ac.uk/id/eprint/3511

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