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Opinion dynamics and wisdom under conformity

Journal
Journal of Economic Dynamics and Control
ISSN
0165-1889
Type
journal article
Date Issued
2015-03-01
Author(s)
Hellmann, Tim
;
Klössner, Stefan
DOI
10.1016/j.jedc.2014.12.006
Abstract
We study a dynamic model of opinion formation in social networks. In our model, boundedly rational agents update opinions by averaging over their neighbors' expressed opinions, but may misrepresent their own opinion by conforming or counter-conforming with their neighbors. We show that an agent?s social influence on the long-run group opinion is increasing in network centrality and decreasing in conformity. Concerning efficiency of information aggregation or "wisdom" of the society, it turns out that misrepresentation of opinions need not undermine wisdom, but may even enhance it. Given the network, we provide the optimal distribution of conformity levels in the society and show which agents should be more conforming in order to increase wisdom.
Language
English
Keywords
Opinion leadership
Wisdom of crowds
Consensus
Social networks
Conformity
Eigenvector centrality
HSG Classification
contribution to scientific community
Refereed
Yes
Publisher
Elsevier
Publisher place
Amsterdam
Volume
52
Number
52
Start page
240
End page
257
Pages
18
URL
https://www.alexandria.unisg.ch/handle/20.500.14171/106698
Subject(s)

economics

Eprints ID
246691
Support
HSG researchers can find instructions here for adding or importing publications (DOI, ORCID). Please send questions to alexandria@unisg.ch

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