Network as information: endogenous network in coordination game
We investigate the concept of endogenous information leadership within the financial market. Prior to coordinating their investments, investors establish a star network at a certain cost. The central node of this star network functions as an information leader, collecting and sharing information wit...
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| Format: | Article |
| Language: | English |
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Taylor & Francis Group
2024-12-01
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| Series: | Journal of Applied Economics |
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| Online Access: | https://www.tandfonline.com/doi/10.1080/15140326.2024.2381176 |
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| _version_ | 1849467267782279168 |
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| author | Bo Wang Suli Zheng |
| author_facet | Bo Wang Suli Zheng |
| author_sort | Bo Wang |
| collection | DOAJ |
| description | We investigate the concept of endogenous information leadership within the financial market. Prior to coordinating their investments, investors establish a star network at a certain cost. The central node of this star network functions as an information leader, collecting and sharing information with all network members, thereby enhancing the chances of successful coordination. We delve deeper into the process of selecting the information leader by introducing a name market, inspired by Tadelis (1999), to identify individuals with the highest leadership potential to assume this role. The interplay between leadership selection through the name market and successful coordination creates a reinforcing loop. The emergence of contagion is attributed to leadership dynamics. Furthermore, we identify an equilibrium where leadership alternates. Our findings provide new insights into the regulation of social media platforms. |
| format | Article |
| id | doaj-art-74d1e92c452d43df8c1024faded9a69c |
| institution | Kabale University |
| issn | 1514-0326 1667-6726 |
| language | English |
| publishDate | 2024-12-01 |
| publisher | Taylor & Francis Group |
| record_format | Article |
| series | Journal of Applied Economics |
| spelling | doaj-art-74d1e92c452d43df8c1024faded9a69c2025-08-20T03:27:43ZengTaylor & Francis GroupJournal of Applied Economics1514-03261667-67262024-12-0127110.1080/15140326.2024.2381176Network as information: endogenous network in coordination gameBo Wang0Suli Zheng1College of Wealth Management, Ningbo University of Finance & Economics, Ningbo, ChinaSchool of Economics and Social Welfare, Zhejiang Shuren University, Hangzhou, ChinaWe investigate the concept of endogenous information leadership within the financial market. Prior to coordinating their investments, investors establish a star network at a certain cost. The central node of this star network functions as an information leader, collecting and sharing information with all network members, thereby enhancing the chances of successful coordination. We delve deeper into the process of selecting the information leader by introducing a name market, inspired by Tadelis (1999), to identify individuals with the highest leadership potential to assume this role. The interplay between leadership selection through the name market and successful coordination creates a reinforcing loop. The emergence of contagion is attributed to leadership dynamics. Furthermore, we identify an equilibrium where leadership alternates. Our findings provide new insights into the regulation of social media platforms.https://www.tandfonline.com/doi/10.1080/15140326.2024.2381176Information leaderendogenous networkname marketcontagion |
| spellingShingle | Bo Wang Suli Zheng Network as information: endogenous network in coordination game Journal of Applied Economics Information leader endogenous network name market contagion |
| title | Network as information: endogenous network in coordination game |
| title_full | Network as information: endogenous network in coordination game |
| title_fullStr | Network as information: endogenous network in coordination game |
| title_full_unstemmed | Network as information: endogenous network in coordination game |
| title_short | Network as information: endogenous network in coordination game |
| title_sort | network as information endogenous network in coordination game |
| topic | Information leader endogenous network name market contagion |
| url | https://www.tandfonline.com/doi/10.1080/15140326.2024.2381176 |
| work_keys_str_mv | AT bowang networkasinformationendogenousnetworkincoordinationgame AT sulizheng networkasinformationendogenousnetworkincoordinationgame |