Carlos Alós-Ferrer Copyright (c) 2008 All rights reserved. http://works.bepress.com/alos Recent documents in Carlos Alós-Ferrer en-us Sat, 26 Apr 2008 02:30:58 PDT 3600 Contagion and Efficiency http://works.bepress.com/alos/17 http://works.bepress.com/alos/17 Thu, 24 Apr 2008 15:04:10 PDT We consider a population of agents, either finite or countably infinite, located on an arbitrary network. Agents interact directly only with their immediate neighbors, but are able to observe the behavior of (some) other agents beyond their interaction neighborhood, and learn from that behavior by imitating successful actions. If interactions are not "too global" but information is fluid enough, we show that the efficient action is the only one which can spread contagiously to the whole population from an initially small, finite subgroup. This result holds even in the presence of an alternative, 1/2 - dominant action. Carlos Alós-Ferrer Learning in Networks