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ICT revolution, globalization and informational lock-in

Sanditov, Bulat (2004) ICT revolution, globalization and informational lock-in. Working Papers Series "Growth and Employment in Europe: Sustainability and Competitiveness", 39. Inst. für Volkswirtschaftstheorie und -politik, WU Vienna University of Economics and Business, Vienna.

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Abstract

We examine a model of social learning in networks following the lines of Bala and Goyal (1998, 2001). As a model of agents' behaviour we have chosen the model of informational cascades of Bikhchandani et al (1992). Similarly to Bala and Goyal we find that the higher the 'degree of integration' within the society is, the more likely it is that conformity of actions will arise. However, unlike their results our model suggests that in the presence of informational externalities globalisation of informational flows, expressed in the increasing density of communication channels in a network, may drive down the expected social welfare. (author's abstract)

Item Type: Paper
Keywords: social learning / cascades / globalization / networks
Classification Codes: JEL D83, O33, F02
Divisions: Departments > Volkswirtschaft
Depositing User: Repository Administrator
Date Deposited: 30 Sep 2004 13:30
Last Modified: 16 Jun 2011 11:16
URI: http://epub.wu.ac.at/id/eprint/1594

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