Network Characteristics Enabling Efficient Coordination: A Simulation Study

Abstract

Using data generated by extensive simulations of a process where individuals interact globally in a coordination game and iteratively imitate the action of the most successful individual in their local neighbourhood, we study the characteristics of the observation network and distribution of initial choices that facilitate (a speedy) convergence to efficient coordination. Knowing these characteristics is crucial when intervening in social network structures with the intention to nudge society to a socially preferred outcome. The most important factor appears to be the share of individuals that are initially seeded with the socially desirable action. Only for a small window of this share, other factors, including the degree distribution in the network and the segregation of individuals using similar actions, have an influence on the dynamic process of achieving efficient coordination. Moreover, networks possessing the properties of a scale-free network are more likely to yield an efficient outcome compared to small-world networks.

Imitation, network size, and efficiency

“…As a consequence, the identified conditions might be unrealistically restrictive and the result refers only to full convergence. Here, we adopt a gradual approach based on extensive agent-based simulations, as in, e.g., Alós-Ferrer & Buckenmaier (2017) and Khan et al (2016). Our computational results show that the extent to which convergence obtains exhibits no sharp discontinuity at the boundary describing the previously identified, sufficient condition, but instead changes continuously.…”