Information Percolation

By Darrell Duffie, G. Giroux, Gustavo Manso. 2008

77 citations recorded by the source corpus.

We study the “percolation” of information of common interest through a large market as agents encounter and reveal information to each other over time. We provide an explicit solution for the dynamics of the cross-sectional distribution of posterior beliefs. We also show that convergence of the cross-sectional distribution of beliefs to a common posterior is exponential and that the rate of convergence does not depend on the size of the groups of agents that meet. The rate of convergence is merely the mean rate at which an individual agent is matched. ( JEL D83 )

Subfields: Economics and Econometrics, Management Science and Operations Research

View Paper: https://www.semanticscholar.org/paper/d9a2bd76be3ff370542a8fd8d4f47f01452d6d2d

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In Economics and Econometrics

In Management Science and Operations Research

Citations in the corpus

Click or Call? Auction versus Search in the Over‐the‐Counter Market (2012, unknown): “Duffie, Giroux, and Manso (2010) model how information diffusion increases in the number of contacts traders make.”
Information Percolation, Momentum and Reversal (2014, unknown): “Following Duffie et al. (2009), the (8)In other words, there is a zero probability that the set of agents that D has met before time t overlaps with the set of agents that J has met before time t.”
Information Percolation With Equilibrium Search Dynamics (2008, methodology): “ Unlike these prior studies, we allow for information asymmetry about a common-value component, with learning from matching and with endogenously chosen search eﬀorts. Our model is related to that of Duﬃe and Manso (2007) and Duﬃe, Giroux, and Manso (2008), which provide an explicit solution for the”