We discuss the influence of information contagion on the dynamics of choices
in social networks of heterogeneous buyers. Starting from an inhomogeneous
cellular automata model of buyers dynamics, we show that when agents try to
adjust their reservation price, the tatonement process does not converge to
equilibrium at some intermediate market share and that large amplitude
fluctuations are actually observed. When the tatonnement dynamics is slow with
respect to the contagion dynamics, large periodic oscillations reminiscent of
business cycles appear.Comment: 13 pages, 6 figure