Network multipliers: The optimality of targeting neighbors

Andrea Galeotti, Sanjeev Goyal

Research output: Contribution to journalArticlepeer-review


A firm wishes to inform a community of individuals about its product. Information travels within the community because of the social interactions between individuals. We establish that social interactions appear in a firm's payoff as a network multiplier, which is increasing both in the mean and in the variance of the distribution of connections. We then show that the degree distribution of a neighbor first order dominates the degree distribution of a node; so a firm must pick the neighbor of a node rather than a node itself as the target of communication. The advantages of employing an indirect communication strategy are greater in more dispersed networks.

Original languageEnglish (US)
Article number4
JournalReview of Network Economics
Issue number3
StatePublished - Sep 2012


  • Network multiplier
  • Social interactions
  • Targeting neighbors

ASJC Scopus subject areas

  • Economics and Econometrics


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