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The stability transition graph under cascade dynamics for social network subscription services
Conference proceeding

The stability transition graph under cascade dynamics for social network subscription services

Steven Weber
2016 54th Annual Allerton Conference on Communication, Control, and Computing (Allerton), pp 194-201
Sep 2016

Abstract

Computational modeling Computers Heuristic algorithms network externality network service adoption Numerical models Social network services stability Stability criteria transitive reduction
Social network subscription services have two key characteristics: i) a network externality, in which the perceived value of the service by users is an increasing function of the set of subscribers (the "active" set), and ii) a subscription cost paid by the users. An active set is stable at a given cost if (non) subscribers have (negative) positive net utility, and is stabilizable if a cost exists at which the set is stable. Transitions among stabilizable sets induced by destabilizing costs follow cascade dynamics. We introduce the stability transition graph (STG) to capture these induced transitions, and characterize its structure. We also characterize the transitive reduction of the STG, which shows that stability transitions achievable via large price destabilizations are always achievable by a series of smaller price destabilizations.

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