g a dynamic ntries and the d from 1990 to 2003. The empirical results find supportive evidence of a contagion effect. By analyzing the correlation-coefficient series, this paper the Asian crisis. The first phase shows an increase in correlation (contagion) and the second phase shows continued high correlation (herding). Statistical ll as in the variance of the correlation coefficients, casting ...

We consider the optimal portfolio problem of a power investor who wishes to allocate her wealth between several credit default swaps (CDSs), a stock index, and a money market account. We model contagion risk among the reference entities in the portfolio using a reduced form Markovian model with interacting default intensities. Using the dynamic programming principle, we establish a lattice depe...

We introduce a bivariate Markov chain counting process with contagion for modelling the clustering arrival of loss claims with delayed settlement for an insurance company. It is a general continuous-time model framework that also has the potential to be applicable to modelling the clustering arrival of events, such as jumps, bankruptcies, crises and catastrophes in finance, insurance and econom...

W study how opinion leadership and social contagion within social networks affect the adoption of a new product. In contrast to earlier studies, we find evidence of contagion operating over network ties, even after controlling for marketing effort and arbitrary systemwide changes. More importantly, we also find that the amount of contagion is moderated by both the recipients’ perception of thei...

We study the dual roles of the stability of an individual’s social network and social contagion on individual behavior in the mobile Internet setting. We use a panel dataset containing all mobile records for a sample of 3G mobile subscribers. Our data includes information about their frequency of mobile Internet usage, and their communication patterns across voice calls and messages, which allo...

In order to address the question whether Hayek might have been an Agent-based Computational Economist (ACE) avant-la-lettre, we consider an ACE model concerning the phenomenon of information contagion. Alongside increasing returns, network externalities, and information cascades, information contagion has been presented in the literature as an explanation for particular patterns of macrobehavio...

Six studies examined the goal contagion hypothesis, which claims that individuals may automatically adopt and pursue a goal that is implied by another person's behavior. Participants were briefly exposed to behavioral information implying a specific goal and were then given the opportunity to act on the goal in a different way and context. Studies 1-3 established the goal contagion phenomenon b...