Abstract
Conformity is a common phenomenon among people in social networks. In this paper, we focus on customers’ conformity behaviors in a symmetry market where customers are located in a social network. We establish a conformity model and analyze it in ring network, random network, small-world network, and scale-free network. Our simulations shown that topology structure, network size, and initial market share have significant effects on the evolution of customers’ conformity behaviors. The market will likely converge to a monopoly state in small-world networks but will form a duopoly market in scale networks. As the size of the network increases, there is a greater possibility of forming a dominant group of preferences in small-world network, and the market will converge to the monopoly of the product which has the initial selector in the market. Also, network density will become gradually significant in small-world networks.
Highlights
Humans are highly susceptible to social influence
A large number of theoretical, empirical, and experimental studies, in psychology and sociology, have investigated the presence of conformity observations with regard to human society, there are few works investigating conformity in social network. It is in this light that we examined the effect of consumers’ conformity in the different structures of social networks
We modeled the social networks as random networks, small-world networks, and scale-free networks and checked the evolution of conformity behavior on these networks
Summary
Humans are highly susceptible to social influence. When a person’s judgment conflicts with a group’s, that person often conforms their judgment to that of the group [1]. When trading stocks and examined the impact of herding on stock prices and whether it is stabilizing or destabilizing As it is well known, the social network is a theoretical construct useful in social sciences to study relationships between individuals, groups, or organizations. A large number of theoretical, empirical, and experimental studies, in psychology and sociology, have investigated the presence of conformity observations with regard to human society, there are few works investigating conformity in social network. It is in this light that we examined the effect of consumers’ conformity in the different structures of social networks.
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