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Diversity of Opinion in Social Networks

Agents on a network experiment repeatedly, and simultaneously with the aim of choosing the optimal (uncertain) action between two alternatives. If each agent is forward looking and rational and observes the behavior only of those in his reference group, could different opinions emerge eventually? Are there structural features of the network that yield diversity of opinion? Does a larger group of agents learn better than a smaller group? We demonstrate, in a strategic learning framework with a social network structure, that the answer to these questions is affirmative and that the critical feature is informational connectedness.