This paper aims to understand some of the mechanisms which dominate the phenomenon of knowledge diffusion in the process that is called ‘interactive learning’. We examine how knowledge spreads in a network in which agents interact by word of mouth. We define a social network structured as a...

This paper analyses the dynamics of return to knowledge where knowledge is acquired through the combination of interactive and individual learning. We suggest that in light of this new definition of knowledge, choosing the optimal level of education is no longer an individual exercise of present...