Equilibration through local information exchange in networks

Information Exchange in Policy Networks

Information exchange in policy networks is usually attributed to preference similarity, influence reputation, social trust and institutional actor roles. We suggest that political opportunity structures and transaction costs play another crucial role and estimate a rich statistical network model on tie formation in the German toxic chemicals policy domain. The results indicate that the effect o...

Local Information in Foreign Exchange Markets

This study shows that order flow in a foreign exchange market only has permanent price impact if it comes from certain regions. These regions are – as predicted by the local information hypothesis – centers of political and financial decision making. It is revealing that orders from other regions only show a very short-lived but no permanent price impact. Local information is so important that ...

Spatial Equilibration in Transport Networks

Local Information in Influence Networks

We study how multi-hop information impacts convergence in social influence networks. In influence networks, nodes have a choice between two options A and B, and each node prefers to end up choosing the option that a majority of its neighbors choose. We consider the case of innovation adoption in which nodes can only change from A to B, but not backwards. For this model, we ask the question, whe...

Controlling Information Exchange in Distributed Bayesian Networks

We propose an algorithm that given a problem formulated as a Distributed Bayesian Network, finds a coordination strategy which minimizes the communication costs while achieving the desired confidence level of the global solution. We developed a system based on this algorithm which models the communication decision process for any given problem structure as a Markov Decision Process and use dyna...