Economics Research Seminar Series: Yanlin Chen, Nanjing Audit University

Research topic: Influencer Networks 

Yanlin Chen, Nanjing Audit University

Topic

Influencer Networks 

abstract

This paper develops a model to examine the formation of influencer networks in user-generated content markets. Unlike previous research, we find that every strict equilibrium network exhibits a nested, upward-linking structure where multiple levels of influencers can coexist. Moreover, across a broad range of parameters, all payoff dominant strict equilibria conform to the law of the vital few: regardless of the population size, a small but significant group of players provides all content. For sufficiently large populations, a single nested upward-linking network connecting all players can emerge, despite potentially polarized tastes over content categories.

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