Social Percolators and Self Organized Criticality
We discuss the influence of information contagion on the dynamics of choices in social networks of heterogeneous buyers. In the case of non-adaptive agents, the dynamics results in either the contagion process being stuck and very few agents actually buying (flops) or in a ‘hit’ where most agents a priori interested in getting the product actually buy it. We also show that when buyers and sellers try to adjust bids and asks the tatonement process does not converge to equilibrium at some intermediate market share and that large amplitude swings are actually observed across the percolation threshold.
KeywordsPercolation Threshold Refractory Period Contagion Process Percolation Transition Movie Industry
Unable to display preview. Download preview PDF.
- Farrell W. (1998), “How hits happen”, HarperCollins, New York. Goldenberg J., B. Libai, S. Solomon, N. Jan, D. Stauffer, 2000, Marketing percolation Physica A, 284, 335–347.Google Scholar
- Huang, Z.F. (2000)Int. J. Mod. Phys.C 11, 287, and Eur.J. Phys. B16, 379.Google Scholar
- Kar Gupta, A. and Stauffer, D. (2000), Int. J. Mod. Phys. C 11, 695.Google Scholar
- Levy H., Levy M., and Solomon S., (2000)Microscopic Simulation of Financial MarketsAcademic Press, New York.Google Scholar
- Lux T. and Ausloos M., (2001), “Market Fluctuations I: Scaling, Multi-Scaling and Their Possible Origins” in A. Bunde and H.-J. Schellnhuber (Hg.):Facets of Universality in Complex Systems: Climate Biodynamics and Stock MarketsBerlin.Google Scholar
- Solomon S., Weisbuch G., de Arcangelis L., Jan N., and Stauffer D. (2000) Physica A 277, 239.Google Scholar
- Stauffer D. and Aharony A., (1994) “Introduction to Percolation Theory”, Taylor and Francis, London.Google Scholar
- Steyer A. and Zimmermann J.B., “Self Organised Criticality in Economic and Social Networks: The case of innovation diffusion” proceedings of the Workshop on Economics and Heterogeneous Interacting (2000).Google Scholar
- G. Weisbuch and D. Stauffer “Hits and Flops Dynamics” Physica A, 287, 3–4, 563–576, (2000).Google Scholar