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Introduction to the Modeling and Analysis of Complex Systems

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16.4. SIMULATING ADAPTIVE NETWORKS 365Adaptive diffusion model The final example in this chapter is <strong>the</strong> adaptive network version<strong>of</strong> <strong>the</strong> continuous state/time diffusion model, where <strong>the</strong> weight <strong>of</strong> a social tie can bestreng<strong>the</strong>ned or weakened according <strong>to</strong> <strong>the</strong> difference <strong>of</strong> <strong>the</strong> node states across <strong>the</strong> edge.This new assumption represents a simplified form <strong>of</strong> homophily, an empirically observedsociological fact that people tend <strong>to</strong> connect those who are similar <strong>to</strong> <strong>the</strong>mselves. In contrast,<strong>the</strong> diffusion <strong>of</strong> node states can be considered a model <strong>of</strong> social contagion, ano<strong>the</strong>rempirically observed sociological fact that people tend <strong>to</strong> become more similar <strong>to</strong> <strong>the</strong>irsocial neighbors over time. There has been a lot <strong>of</strong> debate going on about which mechanism,homophily or social contagion, is more dominant in shaping <strong>the</strong> structure <strong>of</strong> socialnetworks. This adaptive diffusion model attempts <strong>to</strong> combine <strong>the</strong>se two mechanisms <strong>to</strong>investigate <strong>the</strong>ir subtle balance via computer simulations.This example is actually inspired by an adaptive network model <strong>of</strong> a corporate mergerthat my collabora<strong>to</strong>r Junichi Yamanoi <strong>and</strong> I presented recently [73]. We studied <strong>the</strong> conditionsfor two firms that recently underwent a merger <strong>to</strong> successfully assimilate <strong>and</strong> integrate<strong>the</strong>ir corporate cultures in<strong>to</strong> a single, unified identity. The original model was abit complex agent-based model that involved asymmetric edges, multi-dimensional statespace, <strong>and</strong> s<strong>to</strong>chastic decision making, so here we use a more simplified, deterministic,differential equation-based version. Here are <strong>the</strong> model assumptions:• The network is initially made <strong>of</strong> two groups <strong>of</strong> nodes with two distinct cultural/ideologicalstates.• Each edge is undirected <strong>and</strong> has a weight, w ∈ [0, 1], which represents <strong>the</strong> strength<strong>of</strong> <strong>the</strong> connection. Weights are initially set <strong>to</strong> 0.5 for all <strong>the</strong> edges.• The diffusion <strong>of</strong> <strong>the</strong> node states occurs according <strong>to</strong> <strong>the</strong> following equation:dc idt = α ∑ j∈N i(c j − c i )w ij (16.18)Here α is <strong>the</strong> diffusion constant <strong>and</strong> w ij is <strong>the</strong> weight <strong>of</strong> <strong>the</strong> edge between node i<strong>and</strong> node j. The inclusion <strong>of</strong> w ij signifies that diffusion takes place faster throughedges with greater weights.• In <strong>the</strong> meantime, each edge also changes its weight dynamically, according <strong>to</strong> <strong>the</strong>following equation:dw ijdt= βw ij (1 − w ij )(1 − γ |c i − c j | ) (16.19)

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