Algorithmic Game Theory: Cascading Behavior in Networks: Algorithmic and Economic Issues

The flow of information or influence through a large social network can be thought of as unfolding with the dynamics of an epidemic: as individuals become aware of new ideas, technologies, fads, rumors, or gossip, they have the potential to pass them on to their friends and colleagues, causing the resulting behavior to cascade through the network. We consider a collection of probabilistic and game-theoretic models for such phenomena proposed in the mathematical social sciences, as well as recent algorithmic work on the problem by computer scientists. Building on this, we discuss the implications of cascading behavior in a number of on-line settings, including word-of-mouth effects (also known as “viral marketing”) in the success of new products, and the influence of social networks in the growth of on-line

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