Discrete Choice with Social Interactions

@article{Brock1995DiscreteCW,
  title={Discrete Choice with Social Interactions},
  author={William A. Buz Brock},
  journal={IEEE Transactions on Information Theory},
  year={1995}
}
  • W. Brock
  • Published 1 April 2001
  • Economics
  • IEEE Transactions on Information Theory
This paper provides an analysis of aggregate behavioural outcomes when individual utility exhibits social interaction effects. We study generalized logistic models of individual choice which incorporate terms reflecting the desire of individuals to conform to the behaviour of others in an environment of noncooperative decisionmaking. Laws of large numbers are generated in such environments. Multiplicity of equilibria in these models, which are equivalent to the existence of multiple self… 
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Chapter 8 Choice under Social Influence: Effects of Learning Behaviours on the Collective Dynamics
Equilibrium Concepts for Social Interaction Models
TLDR
It is shown that the equilibria of the Brock–Durlauf model are steady states of a differential equation which is a deterministic approximation of the sample-path behavior of Blume's model.
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References

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Dynamic Instability of a Mixed City in the Presence of Neighborhood Externalities
It has been often asked whether a city, currently accommodating a variety of economic, social, and racial groups, will continue to be a "mixed" city or will become exclusively occupied by a single…
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