Price competition in social networks leads to perpetual uninformed agents.
The article explores how people in social networks trade information. They focus on fixed networks where agents can only trade with those they are directly connected to. The researchers look at price competition for information in this setup, using a linear network as an example. They find that there is always a stable point where strategies don't change over time. Interestingly, there can be an equilibrium where some agents never get informed. The price in transactions should not be higher than the expected benefit for all involved. Surprisingly, the price offered for information doesn't decrease to zero over time.