Dessi, Roberta, Gallo, Edoardo and Goyal, Sanjeev
(2011)
Network Cognition.
TSE Working Paper, n. 12-362
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Abstract
We study individual ability to memorize and recall information about friendship
networks using a combination of experiments and survey-based data. In the experi-
ment subjects are shown a network, in which their location is exogenously assigned,
and they are then asked questions about the network after it disappears. We find
that subjects exhibit three main cognitive biases: (i) they underestimate the mean
degree compared to the actual network; (ii) they overestimate the number of rare
degrees; (iii) they underestimate the number of frequent degrees. We then analyze
survey data from two `real' friendship networks from a Silicon Valley firm and from
a University Research Center. We find, somewhat remarkably, that individuals in
these real networks also exhibit these biases.
The experiments yield three further findings: (iv) network cognition is affected
by the subject's location, (v) the accuracy of network cognition varies with the
nature of the network, and (vi) network cognition has a significant effect on economic
decisions.
Item Type: | Monograph (Working Paper) |
---|---|
Language: | English |
Date: | October 2011 |
Subjects: | B- ECONOMIE ET FINANCE |
Divisions: | TSE-R (Toulouse) |
Institution: | Université Toulouse Capitole |
Site: | UT1 |
Date Deposited: | 09 Jul 2014 17:31 |
Last Modified: | 02 Apr 2021 15:47 |
OAI Identifier: | oai:tse-fr.eu:26590 |
URI: | https://publications.ut-capitole.fr/id/eprint/15456 |
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