Networks Webinar Series - Moritz Meyer-ter-Vehn

15 Oct 2021
2:00pm - 3:00pm
Zoom Meeting

The Janeway Institute hosts the Networks Webinar Series which is organised by George Charlson, Sanjeev Goyal, Matt Elliott and Akhil Vohra. For the talk on Friday 15th October 2021, 2:00pm - 3:00pm, Moritz Meyer-ter-Vehn (UCLA) will be the speaker.

Moritz Meyer-ter-Vehn

"An Equilibrium Model of Experimentation on Networks”

We introduce a model of strategic experimentation on social networks where forward-looking agents learn from their own and neighbors’ successes. In equilibrium, a private discovery phase is followed by a social diffusion phase; the anticipation of future social information crowds out agents’ own experimentation. We first study tree-like networks, characterize learning dynamics via ODEs, and draw tight comparisons between directed, undirected and clustered networks. We then turn to general large random networks, with density ranging from sparse trees to dense cliques. We show that information aggregates if network density is low, which motivates private discovery. In contrast, welfare attains a second-best benchmark if network density is intermediate, which allows for a quicker diffusion of discoveries.