Heterogeneous diffusion models let one combine the analysis of intrinsic
propensities with that of intrapopulation contagion, and to disaggregate
contagion effects into individual susceptibilities, the infectiousness of
prior adopters, and the social proximity of prior-potential adopter
pairs. This paper reports the results of a series of Monte Carlo
simulation studies that investigate estimation issues for this class of
models. Graphical analysis of population-level hazard rates is shown to
provide little insight into these processes. We focus on the properties
of maximum likelihood estimators, considering variation across parameter
values and different forms of model misspecification. When models are
correctly specified, we find few conditions under which estimation
appears problematic. Difficult cases involve binary networks where
network linkages have very strong effects or network density is high.
Estimation deteriorates in some characteristic ways when models are
misspecified. For example, propensity and susceptibility effects are
readily confused. An effective model specification strategy is to
include variables in all theoretically plausible components of the model
rather than to test alternative covariate locations sequentially.
Processes where a covariate affects the hazard in multiple ways (for
example, has both propensity and infectiousness effects) are successfully
parsed in correctly specified models. In general, results offer
considerable encouragement for analysts who wish to estimate and test
heterogeneous diffusion models.
* University of Tsukuba
** Cornell University
*** Stanford University