Article ID Journal Published Year Pages File Type
10437806 Journal of Economic Behavior & Organization 2005 17 Pages PDF
Abstract
In many social systems a small event (or parameter change) can trigger a dramatic transition. We show that social systems whose individuals have an inclination to conform to each other may undergo “phase transitions” very similar to statistical mechanic systems. We develop a general criterion that determines whether a given social system is susceptible to undergo a phase transition and show that phase transitions may occur in a wide range of social systems. The heterogeneity of the agents comprising the system is shown to play a crucial role in determining both the possibility of a transition and its magnitude.
Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
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