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Network cognition


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Abstract

We study individual ability to memorize and recall information about friendship networks using a combination of experiments and survey-based data. In the experiment subjects are shown a network, in which their location is exogenously assigned, and they are then asked questions about the network after it disappears. We find that subjects exhibit three main cognitive biases: (i) they underestimate the mean degree compared to the actual network; (ii) they overestimate the number of rare degrees; (iii) they underestimate the number of frequent degrees. We then analyze survey data from two ‘real’ friendship networks from a Silicon Valley firm and from a University Research Center. We find, somewhat remarkably, that individuals in these real networks also exhibit these biases.

Description

Journal Title

Journal of Economic Behavior & Organization

Conference Name

Journal ISSN

0167-2681

Volume Title

123

Publisher

Elsevier

Rights and licensing

Except where otherwised noted, this item's license is described as Attribution-NonCommercial-NoDerivs 2.0 UK: England & Wales
Sponsorship
Financial support from the TSE Fondation Jean-Jacques Laffont Seed Funding Programme is gratefully acknowledged. Sanjeev Goyal also acknowledges support from a Keynes Fellowship and the Cambridge-INET Institute.