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post | Network Effects And Cascading Behaviour | [\usepackage{amsmath}] |
The phenomenon of spreading through networks and cascading behaviors is prevalent in a wide range of real networks. Examples include contagion of diseases, cascading failure of technologies, diffusion of fake news, and viral marketing. Formally, an “infection” event can spread contagion through main players (active/infected nodes) which constitute a propagation tree, known as a cascade. We will examine two model classes of diffusion:
The key intuition behind the game theoretic model is that a node will gain more payoff if its neighbors adopt the same behavior as it. An example is competing technological products: if your friends have the same type DVD players and discs (e.g. Blu-ray vs. HD DVD), then you can enjoy sharing DVDs with them.
Every node independently decides whether to adopt the contagion depending upon its neighbors. The decision is modelled as a two-player game between a node and a given neighbor. Hence a node with degree $$k$$ plays $$k$$ such games to evaluate its payoff and correspondingly its behavior. The total payoff is the sum of node payoffs over all games.
If there are two behavior $$A$$ and $$B$$ in the network and each node can adopt a single behavior, the payoff matrix for the two-player game is as follows:
A | B | |
---|---|---|
A | a | 0 |
B | 0 | b |
where rows correspond to node $$v$$'s behavior, columns correspond to node $$w$$'s behavior, and entries represent each node's payoff.
Let's analyze a node with $$d$$ neighbors, and let $$p$$ be the fraction of nodes which have adopted $$A$$. The payoff for choosing $$A$$ is $$apd$$ and the payoff for choosing $$B$$ is $$b(1-p)d$$. Hence the node adopts behavior $$A$$ if the following is met: $$apd > b(1-p)d \implies p > \frac{b}{a+b}$$
We define $$q = \frac{b}{a+b}$$ to be the threshold fraction of a node's neighbors required for the node to choose $$A$$ i.e. requires $$p > q$$.
Scenario:
Undirected network of Twitter users. 70 identified hashtags associated with 2011 Spain anti-austerity protests. For each user (node):
Key Insights:
A node can adopt both behaviors and become $$AB$$ by paying a cost $$c$$. The resulting payoff matrix (without cost $$c$$ applied) is as follows:
A | B | AB | |
---|---|---|---|
A | a | 0 | a |
B | 0 | b | b |
AB | a | b | max(a,b) |
Let us examine an infinite path graph where everyone begins with behavior/product $$B$$ except for three nodes of the following cases. Let us also set $$b=1$$.
Payoffs for $$w$$: $$A: a$$, $$B: 1$$, $$AB: a+1-c$$
Payoffs for $$w$$: $$A: a$$, $$B: 1$$, $$AB: max(a, 1) + 1 -c$$
The graphs show how different regions of $$(a,c)$$ values impact the decision-based diffusion: