Social Networks and the Diffusion of Economic Behavior

So you’ve decided you want to go to the movies with a friend. How will you go about deciding what to see? You’ll probably start by asking a few friends what they have seen. Once you’ve gotten a few opinions, you’ll have to consult the friend accompanying you, who also most likely spoke to several of her friends, to reach a final decision. If there is one particular movie that nearly everyone you know has already seen, you’ll probably be tempted to see it, even if only to find out what all the buzz is about. In effect, the decisions of your friends will probably have a major and possibly even determining impact on your own choice.