Information Percolation
We study the "percolation" of information of common interest through a large market as agents encounter and reveal information to each other over time. We provide an explicit solution for the dynamics of the cross-sectional distribution of posterior beliefs. We also show that convergence o...
| Main Authors: | , , |
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| Other Authors: | |
| Format: | Article |
| Language: | English |
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American Economic Association
2019
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| Online Access: | https://hdl.handle.net/1721.1/122797 |
| _version_ | 1811087695982624768 |
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| author | Duffie, Darrell Giroux, Gaston Manso, Gustavo |
| author2 | Sloan School of Management |
| author_facet | Sloan School of Management Duffie, Darrell Giroux, Gaston Manso, Gustavo |
| author_sort | Duffie, Darrell |
| collection | MIT |
| description | We study the "percolation" of information of common interest through a large market as agents encounter and reveal information to each other over time. We provide an explicit solution for the dynamics of the cross-sectional distribution of posterior beliefs. We also show that convergence of the cross-sectional distribution of beliefs to a common posterior is exponential and that the rate of convergence does not depend on the size of the groups of agents that meet. The rate of convergence is merely the mean rate at which an individual agent is matched. |
| first_indexed | 2024-09-23T13:50:33Z |
| format | Article |
| id | mit-1721.1/122797 |
| institution | Massachusetts Institute of Technology |
| language | English |
| last_indexed | 2024-09-23T13:50:33Z |
| publishDate | 2019 |
| publisher | American Economic Association |
| record_format | dspace |
| spelling | mit-1721.1/1227972022-09-28T16:33:35Z Information Percolation Duffie, Darrell Giroux, Gaston Manso, Gustavo Sloan School of Management General Economics, Econometrics and Finance We study the "percolation" of information of common interest through a large market as agents encounter and reveal information to each other over time. We provide an explicit solution for the dynamics of the cross-sectional distribution of posterior beliefs. We also show that convergence of the cross-sectional distribution of beliefs to a common posterior is exponential and that the rate of convergence does not depend on the size of the groups of agents that meet. The rate of convergence is merely the mean rate at which an individual agent is matched. 2019-11-07T20:31:39Z 2019-11-07T20:31:39Z 2010-02 2019-04-29T17:31:38Z Article http://purl.org/eprint/type/JournalArticle 1945-7669 1945-7685 https://hdl.handle.net/1721.1/122797 Duffie, Darrell, Gaston Giroux, and Gustavo Manso. 2010. "Information Percolation." American Economic Journal: Microeconomics, 2 (1): 100-111. en 10.1257/mic.2.1.100 American Economic Journal: Microeconomics Article is made available in accordance with the publisher's policy and may be subject to US copyright law. Please refer to the publisher's site for terms of use. application/pdf American Economic Association American Economic Association |
| spellingShingle | General Economics, Econometrics and Finance Duffie, Darrell Giroux, Gaston Manso, Gustavo Information Percolation |
| title | Information Percolation |
| title_full | Information Percolation |
| title_fullStr | Information Percolation |
| title_full_unstemmed | Information Percolation |
| title_short | Information Percolation |
| title_sort | information percolation |
| topic | General Economics, Econometrics and Finance |
| url | https://hdl.handle.net/1721.1/122797 |
| work_keys_str_mv | AT duffiedarrell informationpercolation AT girouxgaston informationpercolation AT mansogustavo informationpercolation |