| Warburger Str. 100, Q0.425
On January 20, 2014, Tim Hellmann will give a talk on "Opinion Dynamics and Wisdom under Conformity".
We study a dynamic model of opinion formation in social networks. In our model, boundedly rational agents update opinions by averaging over their neighbors' expressed opinions, but may misrepresent their own opinion by conforming or counter-conforming with their neighbors. We show that an agent's social influence on the long-run group opinion is increasing in network centrality and decreasing in conformity. For efficiency of information aggregation ("wisdom"), misrepresentation of opinions need not undermine wisdom. Given the network, we provide the optimal distribution of conformity levels in the society and show which agents should be more conforming in order to increase wisdom.