Santa Fe Institute

Diffusion of Microfinance

Colloquium

February 05, 2013
3:30 PM
Noyce Conference Room

Matthew O. Jackson (Department of Economics, Stanford University)

Abstract.  We develop a new, simple model of word-of-mouth diffusion that we then fit to data that we collected in 43 rural villages in Karnataka in southern India. Based on this model we do several things. First, we use it to derive a new measure of how central a given node is in a network: diffusion centrality.   Second, we show that the diffusion centrality of those individuals informed first is a strong and significant predictor of the eventual participation in a microfinance program in these villages.

We also show that this centrality measure significantly outperforms other standard centrality measures, such as degree centrality, betweenness centrality, eigenvector centrality, and Bonacich centrality.  Fitting the model to the village data allows us to (i) infer relative roles of basic information transmission versus other forms of peer influence, and (ii) distinguish information passing by participants and non-participants. We find that participants are significantly more likely to pass information on to friends and acquaintances than informed non-participants. However, information passing by non-participants is still substantial and significant, accounting for roughly one-third of eventual informedness and participation. We also find that, once we have properly conditioned on an individual being informed, her decision to participate is not significantly affected by the participation of her acquaintances.

Purpose: Research Collaboration

SFI Host: Cris Moore

More Info

  • * SFI community lectures are free, open, & accessible to the public.
  • * Other SFI events are by invitation only.

Events News

Video: Karissa Sanbonmatsu on DNA, love, and gender Feb. 5, 2016 -

During an SFI Community Lecture January 19 in Santa Fe, Dr. Karissa Sanbonmatsu explored the new science of epigenetics and how it might help us understand autism, addiction, and even ...

Two new trustees elected to SFI’s Board Dec. 7, 2015 -

The Santa Fe Institute’s Board of Trustees has welcomed two new members-- Ted Rogers of American Industrial Partners and Gene Stark of Los Alamos National Laboratory (retired).

Video: Patricia Churchland on the self as brain Nov. 24, 2015 -

During an SFI Community Lecture November 18 in Santa Fe, neurophilosopher Patricia Churchland explained the neural workings that underlie identity. Watch it here.

Apply now for SFI's 2016 Complex Systems Summer School Nov. 10, 2015 -

SFI is accepting applications for its signature education program for graduate students and postdocs -- the 2016 Complex Systems Summer School, June 12-July 8, 2015, in Santa Fe. Apply by January ...

One reporter's account of SFI's 'Genius and Madness' event in August Nov. 9, 2015 -

Months before the release of Cormac McCarthy's forthcoming novel, an auditorium-capacity crowd – including a reporter from Sueddeutsche Zeitung, the largest-circulation daily newspaper in Germany – was treated to a reading ...

More News