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The Diffusion of Microfinance

TL;DR: This article examined how participation in a micro-finance program diffuses through social networks and found that participants are significantly more likely to pass information on to friends and acquaintances than informed non-participants.
Abstract: We examine how participation in a microfinance program diffuses through social networks. We collected detailed demographic and social network data in 43 villages in South India before microfinance was introduced in those villages and then tracked eventual participation. We exploit exogenous variation in the importance (in a network sense) of the people who were first informed about the program, "the injection points". Microfinance participation is higher when the injection points have higher eigenvector centrality. We estimate structural models of diffusion that allow us to (i) determine the relative roles of basic information transmission versus other forms of peer influence, and (ii) distinguish information passing by participants and non-participants. We find that participants are significantly more likely to pass information on to friends and acquaintances than informed non-participants, but that information passing by non-participants is still substantial and significant, accounting for roughly a third of informedness and participation. We also find that, conditioned on being informed, an individual's decision is not significantly affected by the participation of her acquaintances.
Citations
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Journal ArticleDOI
TL;DR: A family of H-indices are obtained that can be used to measure a node's importance and it is proved that the convergence to coreness can be guaranteed even under an asynchronous updating process, allowing a decentralized local method of calculating a nodes' coreness in large-scale evolving networks.
Abstract: Identifying influential nodes in dynamical processes is crucial in understanding network structure and function. Degree, H-index and coreness are widely used metrics, but previously treated as unrelated. Here we show their relation by constructing an operator , in terms of which degree, H-index and coreness are the initial, intermediate and steady states of the sequences, respectively. We obtain a family of H-indices that can be used to measure a node's importance. We also prove that the convergence to coreness can be guaranteed even under an asynchronous updating process, allowing a decentralized local method of calculating a node's coreness in large-scale evolving networks. Numerical analyses of the susceptible-infected-removed spreading dynamics on disparate real networks suggest that the H-index is a good tradeoff that in many cases can better quantify node influence than either degree or coreness.

486 citations

Journal ArticleDOI
TL;DR: It is shown that it is possible to reduce conflict with a student-driven intervention, and the power of peer influence for changing climates of conflict is demonstrated, and which students to involve in those efforts is suggested.
Abstract: Theories of human behavior suggest that individuals attend to the behavior of certain people in their community to understand what is socially normative and adjust their own behavior in response. An experiment tested these theories by randomizing an anticonflict intervention across 56 schools with 24,191 students. After comprehensively measuring every school’s social network, randomly selected seed groups of 20–32 students from randomly selected schools were assigned to an intervention that encouraged their public stance against conflict at school. Compared with control schools, disciplinary reports of student conflict at treatment schools were reduced by 30% over 1 year. The effect was stronger when the seed group contained more “social referent” students who, as network measures reveal, attract more student attention. Network analyses of peer-to-peer influence show that social referents spread perceptions of conflict as less socially normative.

406 citations

Journal ArticleDOI
TL;DR: In this paper, the authors investigated the role of mass media in times of conflict and state-sponsored mass violence against civilians and found that the broadcasts had a significant effect on participation in killings by both militia groups and ordinary civilians.
Abstract: This article investigates the role of mass media in times of conflict and state-sponsored mass violence against civilians. We use a unique village-level data set from the Rwandan genocide to estimate the impact of a popular radio station that encouraged violence against the Tutsi minority population. The results show that the broadcasts had a significant effect on participation in killings by both militia groups and ordinary civilians. An estimated 51,000 perpetrators, or approximately 10% of the overall violence, can be attributed to the station. The broadcasts increased militia violence not only directly by influencing behavior in villages with radio reception but also indirectly by increasing participation in neighboring villages. In fact, spillovers are estimated to have caused more militia violence than the direct effects. Thus, the article provides evidence that mass media can affect participation in violence directly due to exposure and indirectly due to social interactions. JEL Codes: D7, N4.

349 citations

Posted Content
TL;DR: In this paper, the authors provide an overview and synthesis of the literatures analyzing games in which players are connected via a network structure, and discuss the impact of the structure of the network on individuals' behaviors.
Abstract: We provide an overview and synthesis of the literatures analyzing games in which players are connected via a network structure. We discuss, in particular, the impact of the structure of the network on individuals' behaviors. We focus on game theoretic modeling, but also include some discussion of analyses of peer effects, as well as applications to diffusion, employment, crime, industrial organization, and education.

324 citations

References
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Journal ArticleDOI
04 Jun 1998-Nature
TL;DR: Simple models of networks that can be tuned through this middle ground: regular networks ‘rewired’ to introduce increasing amounts of disorder are explored, finding that these systems can be highly clustered, like regular lattices, yet have small characteristic path lengths, like random graphs.
Abstract: Networks of coupled dynamical systems have been used to model biological oscillators, Josephson junction arrays, excitable media, neural networks, spatial games, genetic control networks and many other self-organizing systems. Ordinarily, the connection topology is assumed to be either completely regular or completely random. But many biological, technological and social networks lie somewhere between these two extremes. Here we explore simple models of networks that can be tuned through this middle ground: regular networks 'rewired' to introduce increasing amounts of disorder. We find that these systems can be highly clustered, like regular lattices, yet have small characteristic path lengths, like random graphs. We call them 'small-world' networks, by analogy with the small-world phenomenon (popularly known as six degrees of separation. The neural network of the worm Caenorhabditis elegans, the power grid of the western United States, and the collaboration graph of film actors are shown to be small-world networks. Models of dynamical systems with small-world coupling display enhanced signal-propagation speed, computational power, and synchronizability. In particular, infectious diseases spread more easily in small-world networks than in regular lattices.

39,297 citations

01 Jan 1927
TL;DR: The present communication discussion will be limited to the case in which all members of the community are initially equally susceptible to the disease, and it will be further assumed that complete immunity is conferred by a single infection.
Abstract: (1) One of the most striking features in the study of epidemics is the difficulty of finding a causal factor which appears to be adequate to account for the magnitude of the frequent epidemics of disease which visit almost every population. It was with a view to obtaining more insight regarding the effects of the various factors which govern the spread of contagious epidemics that the present investigation was undertaken. Reference may here be made to the work of Ross and Hudson (1915-17) in which the same problem is attacked. The problem is here carried to a further stage, and it is considered from a point of view which is in one sense more general. The problem may be summarised as follows: One (or more) infected person is introduced into a community of individuals, more or less susceptible to the disease in question. The disease spreads from the affected to the unaffected by contact infection. Each infected person runs through the course of his sickness, and finally is removed from the number of those who are sick, by recovery or by death. The chances of recovery or death vary from day to day during the course of his illness. The chances that the affected may convey infection to the unaffected are likewise dependent upon the stage of the sickness. As the epidemic spreads, the number of unaffected members of the community becomes reduced. Since the course of an epidemic is short compared with the life of an individual, the population may be considered as remaining constant, except in as far as it is modified by deaths due to the epidemic disease itself. In the course of time the epidemic may come to an end. One of the most important probems in epidemiology is to ascertain whether this termination occurs only when no susceptible individuals are left, or whether the interplay of the various factors of infectivity, recovery and mortality, may result in termination, whilst many susceptible individuals are still present in the unaffected population. It is difficult to treat this problem in its most general aspect. In the present communication discussion will be limited to the case in which all members of the community are initially equally susceptible to the disease, and it will be further assumed that complete immunity is conferred by a single infection.

7,769 citations

Journal ArticleDOI
TL;DR: In this article, the authors analyze a sequential decision model in which each decision maker looks at the decisions made by previous decision makers in taking her own decision, and they show that the decision rules that are chosen by optimizing individuals will be characterized by herd behavior.
Abstract: We analyze a sequential decision model in which each decision maker looks at the decisions made by previous decision makers in taking her own decision. This is rational for her because these other decision makers may have some information that is important for her. We then show that the decision rules that are chosen by optimizing individuals will be characterized by herd behavior; i.e., people will be doing what others are doing rather than using their information. We then show that the resulting equilibrium is inefficient.

5,956 citations

Proceedings ArticleDOI
24 Aug 2003
TL;DR: An analysis framework based on submodular functions shows that a natural greedy strategy obtains a solution that is provably within 63% of optimal for several classes of models, and suggests a general approach for reasoning about the performance guarantees of algorithms for these types of influence problems in social networks.
Abstract: Models for the processes by which ideas and influence propagate through a social network have been studied in a number of domains, including the diffusion of medical and technological innovations, the sudden and widespread adoption of various strategies in game-theoretic settings, and the effects of "word of mouth" in the promotion of new products. Recently, motivated by the design of viral marketing strategies, Domingos and Richardson posed a fundamental algorithmic problem for such social network processes: if we can try to convince a subset of individuals to adopt a new product or innovation, and the goal is to trigger a large cascade of further adoptions, which set of individuals should we target?We consider this problem in several of the most widely studied models in social network analysis. The optimization problem of selecting the most influential nodes is NP-hard here, and we provide the first provable approximation guarantees for efficient algorithms. Using an analysis framework based on submodular functions, we show that a natural greedy strategy obtains a solution that is provably within 63% of optimal for several classes of models; our framework suggests a general approach for reasoning about the performance guarantees of algorithms for these types of influence problems in social networks.We also provide computational experiments on large collaboration networks, showing that in addition to their provable guarantees, our approximation algorithms significantly out-perform node-selection heuristics based on the well-studied notions of degree centrality and distance centrality from the field of social networks.

5,887 citations

Journal ArticleDOI
TL;DR: A dynamical model for the spreading of infections on scale-free networks is defined, finding the absence of an epidemic threshold and its associated critical behavior and this new epidemiological framework rationalizes data of computer viruses and could help in the understanding of other spreading phenomena on communication and social networks.
Abstract: The Internet has a very complex connectivity recently modeled by the class of scale-free networks. This feature, which appears to be very efficient for a communications network, favors at the same time the spreading of computer viruses. We analyze real data from computer virus infections and find the average lifetime and persistence of viral strains on the Internet. We define a dynamical model for the spreading of infections on scale-free networks, finding the absence of an epidemic threshold and its associated critical behavior. This new epidemiological framework rationalizes data of computer viruses and could help in the understanding of other spreading phenomena on communication and social networks.

5,324 citations