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on Network Economics |
| By: | Pogorelskiy. Kirill (University of Warwick); Shum, Matthew (Caltech) |
| Abstract: | More voters than ever get political news from their friends on social media platforms. Is this bad for democracy? Using context-neutral laboratory experiments, we find that biased (mis)information shared on social networks affects the quality of collective decisions relatively more than does segregation by political preferences on social media. Two features of subject behavior underlie this finding: 1) they share news signals selectively, revealing signals favorable to their candidates more often than unfavorable signals; 2) they naıvely take signals at face value and account for neither the selection in the shared signals nor the differential informativeness of news signals across different sources. |
| Keywords: | news sharing ; social networks ; voting ; media bias ; fake news ; polarization ; filter bubble ; lab experiments |
| JEL: | C72 C91 C92 D72 D83 D85 |
| Date: | 2019 |
| URL: | https://d.repec.org/n?u=RePEc:wrk:warwec:1199&r=all |
| By: | Olaizola Ortega, María Norma; Valenciano Llovera, Federico |
| Abstract: | We consider a natural generalization of Jackson and Wolinsky s (1996) connections model where the quality or strength of a link depends on the amount invested in it and is determined by a non-decreasing function of that amount. The information that the nodes receive through the network is the revenue from investments in links. We prove that in this most general version of the connections model, the only possibly nonempty efficient networks, in the sense of maximizing the aggregate proffit, are still the all-encompassing star and the complete network, with the sole and rare exception of a highly particular case where there is a draw between the all-encompassing star, the complete network and a whole range of a particular type of nested split graph structures intermediate between them. |
| Keywords: | network, formation, connecions, model, nested, split, graph, efficiency |
| JEL: | A14 C7 D85 |
| Date: | 2019–05–09 |
| URL: | https://d.repec.org/n?u=RePEc:ehu:ikerla:34463&r=all |
| By: | Olsson, Maria (Department of Economics) |
| Abstract: | Where do business cycles originate? The traditional view is that a business cycle is the result of shocks correlated across sectors. This view is complemented by a recently emerging literature showing that idiosyncratic shocks to large or highly interconnected sectors contribute to aggregate variation. This paper addresses the relative empirical importance of these two channels of business cycle variation. Results indicate that up to one-third of the business cycle is driven by idiosyncratic productivity variation together with network amplifications. |
| Keywords: | Production Networks; Micro to Macro; Aggregate Volatility; Sectoral Distortions |
| JEL: | D52 D57 E32 L11 |
| Date: | 2019–02–14 |
| URL: | https://d.repec.org/n?u=RePEc:hhs:uunewp:2019_006&r=all |