Paternalism, homophily and cultural transmission in random networks

Fabrizio Panebianco (1, 2) , Thierry Verdier (3, 4, 5, 6)

1 Bocconi University
2 IGIER
3 PSE - Paris School of Economics
4 PJSE - Paris Jourdan Sciences Economiques
5 PUC-Rio - Pontifícia Universidade Católica do Rio de Janeiro [Brasil] = Pontifical Catholic University of Rio de Janeiro [Brazil] = Université catholique pontificale de Rio de Janeiro [Brésil]
6 CEPR - Center for Economic Policy Research

We study cultural diffusion in a random network where the transition probabilities are determined by a cultural transmission technology with endogenous vertical transmission rates (à la Bisin and Verdier, 2001). We present a two-way epidemic model in which both the infection and the recovery rates are endogenous and depend on the topology of the network. We characterize two balancing conditions satisfied by the network degree distribution and the vertical transmission rate distribution to ensure the sustainability of long run cultural heterogeneity. We discuss the effects of cultural homophily and paternalistic motivations for cultural transmission on the persistence of steady state cultural diversity.

Mots clés: Social networks; Diffusion; Cultural transmission; Homophily

Domaines: Economies et finances

Fabrizio Panebianco, Thierry Verdier. Paternalism, homophily and cultural transmission in random networks. Games and Economic Behavior, 2017, 105, pp.155-176. ⟨10.1016/j.geb.2017.07.006⟩. ⟨hal-01631100⟩