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

SFI Community Lecture August 30: Human emotion and wearable tech Aug. 22, 2016 -

During an SFI Community Lecture on Tuesday evening, August 30, in Santa Fe, Rosalind Picard reveals some surprises she has discovered at the intersection of human emotion and wearable tech.

Networks, AI, and psychology for social change Aug. 4, 2016 -

Drawing from network science, decision-making tools with artificial intelligence, and social influence theories, experts gathered at SFI recently to explore new ways to spark large-scale social change.

How microbiomes respond to disturbance Aug. 2, 2016 -

To prepare for climate change, urbanization, or antibiotic resistance, we need to know how the microbial world we are immersed in will respond to stress. A recent SFI meeting sought ...

Video: John McWhorter on 'The Language Hoax' July 15, 2016 -

Watch linguist John McWhorter deliver a community lecture in which he rethinks the widely-held belief that the language we speak shapes how we experience life.

Tracking animal migrations has become easier... now what? June 30, 2016 -

During a working group this week at SFI, roughly a dozen ecologists and computer scientists will explore ways emerging technologies might help researchers better understand why and how individuals in ...

More News