Monash University · FACULTY OF ECONOMICS

ECC3841 Chap.4 Contagion and Diffusion

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Chapter 4 of 10 · ECC3841

Contagion and Diffusion

Contagion and diffusion connect network reachability to dynamic thresholds. Epidemic models compare transmission with recovery, while protection reduces the effective reproduction number. SIR removes recovered individuals from immediate susceptibility; SIS returns them to the susceptible state. Bass adoption combines an external innovation channel with internal imitation.

Simple contagion can spread after one exposure, whereas complex contagion requires reinforcement. The central skill is selecting the state process and interpreting a threshold without treating it as a full forecast.

In this chapter

What this chapter covers

  • 01

    Giant-component thresholds

  • 02

    Basic and effective reproduction numbers

  • 03

    Protection and herd thresholds

  • 04

    SIR compartment flows

  • 05

    SIS reinfection dynamics

  • 06

    Bass innovation and imitation channels

  • 07

    Simple versus complex contagion

  • 08

    Network seeding and intervention

Worked example · free

Compute a protection threshold

Q [4 marks]. The weighting here is not a published university assessment scheme. The basic reproduction number is four. What protected share makes the effective number strictly below one?
Regime test.Regime test. Below the threshold, a small seed tends to contract; above it, early growth can become self-sustaining. Initial conditions still matter away from the boundary.effective R below 1effective R above 1threshold
Regime test. Below the threshold, a small seed tends to contract; above it, early growth can become self-sustaining. Initial conditions still matter away from the boundary.
  • +1Write the condition four times one minus v is below one.
  • +1Divide to obtain one minus v below one quarter.
  • +1Rearrange to v above three quarters.
  • +1Interpret equality as the boundary, not strict decline.
More than 75% must be fully protected under the model assumptions.
Sia tip — State the inequality and interpret the regime, not only the percentage.
Glossary

Key terms

Reproduction number
The expected secondary cases generated under specified transmission and susceptibility conditions.
SIR model
A compartment model moving people from susceptible to infected to recovered.
SIS model
A compartment model returning recovered individuals to susceptibility.
Bass model
An adoption model combining external innovation and internal imitation.
Complex contagion
Spread that requires multiple exposures or threshold reinforcement.
FAQ

Contagion and Diffusion FAQ

What does a reproduction threshold tell me?

It indicates whether a small infection tends to grow or contract near the relevant state. It does not by itself determine peak size, timing or final reach. Name the state transition, threshold comparison and model assumption before recommending a diffusion intervention.

When should I use SIS?

Use SIS when recovery does not confer lasting protection and individuals can become susceptible again. Name the state transition, threshold comparison and model assumption before recommending a diffusion intervention.

Why can Bass adoption be S-shaped?

Early adoption is driven by the external channel, imitation strengthens as adopters accumulate, and growth later slows as the remaining market shrinks. Name the state transition, threshold comparison and model assumption before recommending a diffusion intervention.

Is the highest-degree seed always best?

No. Clustering can make contacts redundant, and complex contagion may reward several nearby seeds. Match targeting to the transmission rule. Name the state transition, threshold comparison and model assumption before recommending a diffusion intervention.

Study strategy

Exam move

For every diffusion problem, write states and flows before updating stocks. Draw boxes for susceptible, infected and recovered people, then label the flow between boxes with the beginning-of-period stocks used in the formula. Calculate new infections and recoveries separately. Update all compartments only after both flows are known.

Check that shares remain nonnegative and sum to one; failure of either check signals an arithmetic error or an unsuitable time step. Distinguish SIR from SIS by asking what happens after recovery. For thresholds, identify the force creating new cases or adopters and the force removing or blocking them. Write the effective reproduction inequality and preserve the strict sign when converting it to a protection share.

Equality is the boundary. Separate reach from realized transmission: a giant component creates a possible route but does not guarantee that every edge transmits. Compare simple contagion, where one exposure can suffice, with complex contagion, where reinforcement is required. This difference changes whether a bridge or a cluster of seeds is useful. For Bass adoption, label external innovation and internal imitation separately.

Predict how increasing each parameter changes takeoff and curve shape before graphing. Do not call every S-shaped curve an epidemic result. Build a policy table that maps vaccination, distancing, faster recovery, advertising and seeding to the parameter or state each changes. Then state the objective: reduce early growth, lower the peak, shrink final reach or accelerate beneficial adoption.

On the final practice round, recompute one SIR step, one protection threshold and one early Bass interpretation without notes. Finish each with a regime statement and a limitation about heterogeneity, clustering or behavioral response.

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