TY - JOUR
T1 - Influencing the influencers
T2 - A theory of strategic diffusion
AU - Galeotti, Andrea
AU - Goyal, Sanjeev
PY - 2009
Y1 - 2009
N2 - The growth of the Internet and assorted technologies has made it possible to collect and process detailed information on social networks. This article investigates how firms (and governments) can harness the power of social networks to promote their goals. We show that the optimal use of social networks leads to higher sales and greater profits. However, an increase in the level and dispersion of social interaction can increase or decrease the optimal influence strategy and profits of the player, depending on the content of the interaction. Optimal influence strategies will target individuals with low or high connections, depending on the content of interaction. Finally, the returns to investing in market research on social networks are greater in more unequal networks.
AB - The growth of the Internet and assorted technologies has made it possible to collect and process detailed information on social networks. This article investigates how firms (and governments) can harness the power of social networks to promote their goals. We show that the optimal use of social networks leads to higher sales and greater profits. However, an increase in the level and dispersion of social interaction can increase or decrease the optimal influence strategy and profits of the player, depending on the content of the interaction. Optimal influence strategies will target individuals with low or high connections, depending on the content of interaction. Finally, the returns to investing in market research on social networks are greater in more unequal networks.
UR - http://www.scopus.com/inward/record.url?scp=70350138700&partnerID=8YFLogxK
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U2 - 10.1111/j.1756-2171.2009.00075.x
DO - 10.1111/j.1756-2171.2009.00075.x
M3 - Article
AN - SCOPUS:70350138700
SN - 0741-6261
VL - 40
SP - 509
EP - 532
JO - RAND Journal of Economics
JF - RAND Journal of Economics
IS - 3
ER -