![]() |
![]() |
Home |
Topology
of social networks : small world networks and Internet
Newman
M. E. J. [2000], "Models of the Small World: A Review", Working
Paper http://tanzeem.www.media.mit.edu/people/tanzeem/cohn/CoHN.htm It
is believed that almost any pair of people in the world can be connected
to one another by a short chain of intermediate acquaintances, of typical
length about six. This phenomenon, colloquially referred to as the “six
degrees of separation,” has been the subject of considerable recent
interest within the physics community. This paper provides a short review
of the topic. "Six
degrees of separation" :there is a path of no more than six acquaintances
linking any human being to any other being on the planet. While the
exact number six may not be universal, it does appear that for most
social networks, only a short chain is needed to connect even the most
distant of the network's members. This observation has immediate consequences
for the spread of disease and evolutionary game theory, as well as related
topics concerning genetic regulatory networks and networks of synchronized
oscillators. At first sight this does not seem too surprising a result;
random networks have average vertex-vertex distances which increase
as the logarithm of the number of vertices and which can therefore be
small even in very large networks. However, real social networks are
far from random, possessing well-defined locales in which the probability
of connection is high and the probability of a connection between two
vertices chosen at random is very low. Watts
and Strogatz have recently proposed a model of the ``small world"
which reconciles these observations. Their model does indeed possess
well-defined locales, with vertices falling on a regular lattice, but
in addition there is a fixed density of random "shortcuts"
on the lattice which can link distant vertices. Their principal finding
is that only a small density of such shortcuts is necessary to produce
vertex-vertex distances comparable to those found on a random network.
This suggests the possibility of predicting cluster formation (and hence,
information diffusion) by a parameter which measures the extent of random
perturbations in connectivity. Watts, D.J.,
S. H. Strogatz [1998], "Collective dynamics of 'small-world' networks."
Nature, 393:440-442, 1998. Abstract : Networks
of coupled dynamical systems have been used to model biological oscillators1–4,
Josephson junction arrays5,6, excitable media7, neural networks8–10,
spatial games11, genetic control networks12 and many other self-organizing
systems. Ordinarily, the connection topology is assumed to be either
completely regular or completely random. But many biological, technological
and social networks lie somewhere between these two extremes. Here we
explore simple models of networks that can be tuned through this middle
ground: regular networks ‘rewired’ to introduce increasing amounts of
disorder. We find that these systems can be highly clustered, like regular
lattices, yet have small characteristic path lengths, like random graphs.
We call them ‘small-world’ networks, by analogy with the small-world
phenomenon13,14 (popularly known as six degrees of separation15). The
neural network of the worm Caenorhabditis elegans, the power grid of
the western United States, and the collaboration graph of film actors
are shown to be small-world networks. Models of dynamical systems with
small-world coupling display enhanced signal-propagation speed, computational
power, and synchronizability. In particular, infectious diseases spread
more easily in small-world networks than in regular lattices. Strogatz
S. H. [2001], "Exploring complex networks", Nature 410,
268-276 http://tanzeem.www.media.mit.edu/people/tanzeem/cohn/CoHN.htm The
study of networks pervades all of science, from neurobiology to statistical
physics. The most basic issues are structural: how does one characterize
the wiring diagram of a food web or the Internet or the metabolic network
of the bacterium Escherichia coli? Are there any unifying principles
underlying their topology? From the perspective of nonlinear dynamics,
we would also like to understand how an enormous network of interacting
dynamical systems — be they neurons, power stations or lasers — will
behave collectively, given their individual dynamics and coupling architecture.
Researchers are only now beginning to unravel the structure and dynamics
of complex networks. Milgram, S.
"The small world problem." Psychol. Today, 2:60-67, 1967. Sanjay
Jain, Physics, Centre for Theoretical Studies, Indian Institute of Science,
Bangalore Jain S., Krishna
S. [2001], "A model for the emergence of cooperation, interdependence
and structure in evolving networks", Santa Fe Institute Working
Paper Evolution
produces complex and structured networks of interacting components in
chemical, biological, and social systems. We describe a simple mathematical
model for the evolution of an idealized chemical system to study how
a network of cooperative molecular species arises and evolves to become
more complex and structured. The network is modeled by a directed weighted
graph whose positive and negative links represent `catalytic' and `inhibitory'
interactions among the molecular species, and which evolves as the least
populated species (typically those that go extinct) are replaced by
new ones. A small autocatalytic
set (ACS), appearing by chance, provides the seed for the spontaneous
growth of connectivity and cooperation in the graph. A highly structured
chemical organization arises inevitably as the ACS enlarges and percolates
through the network in a short, analytically determined time scale.
This self-organization does not require the presence of self-replicating
species. The network also exhibits catastrophes over long time scales
triggered by the chance elimination of `keystone' species, followed
by recoveries. http://www.santafe.edu/sfi/research/focus/networkDynamics/projects/networkFormation.html Troy
Tassier, Filippo Menczer : Santa Fe Institute Tassier T.,
Menczer F. [2000], "Emerging Small-World Referral Networks in Evolutionary
Labor Markets", Santa Fe Institute Working Paper We
model a labor market that includes referral networks using an agent
based simulation. Agents maximize their employment satisfaction by allocating
resources to build friendship networks and to adjust search intensity.
We use a local selection evolutionary algorithm, which maintains a diverse
population of strategies, to study the adaptive graph topologies resulting
from the model. The evolved networks display mixtures of regularity
and randomness, as in small-world networks. A second characteristic
emerges in our model as time progresses; the population loses efficiency
due to over-competition for job referral contacts in a way similar to
social dilemmas such as the tragedy of the commons. Analysis reveals
that the loss of global fitness is driven by an increase in individual
robustness, which allows agents to live longer by surviving job losses.
The behavior of our model suggests predictions for a number of policies.
Cristopher
Moore and M. E. J. Newman Moore
C., Newman M.E.J [2000], "Epidemics and Percolation in Small-World
Networks", Santa Fe Institute Working Paper We
study some simple models of disease transmission on small-world networks,
in which either the probability of infection by a disease or the probability
of its transmission is varied, or both. The resulting models display
epidemic behavior when the infection or transmission probability rises
above the threshold for site or bond percolation on the network, and
we give exact solutions for the position of this threshold in a variety
of cases. We confirm our analytic results by numerical simulation. Moore
C., Newman M.E.J [2000], "Exact solution of site and bond percolation
on small-world networks", Santa Fe Institute Working Paper We study percolation on small-world networks, which has
been proposed as a simple model of the propagation of disease. The occupation
probabilities of sites and bonds correspond to the susceptibility of
individuals to the disease and the transmissibility of the disease respectively.
We give an exact solution of the model for both site and bond percolation,
including the position of the percolation transition at which epidemic
behavior sets in, the values of the two critical exponents governing
this transition, and the mean and variance of the distribution of cluster
sizes (disease outbreaks) below the transition. M. Granovetter
M. [1973], "The strength of weak ties", American Journal
of Sociology, 78(6), 1360-1380 http://tanzeem.www.media.mit.edu/people/tanzeem/cohn/CoHN.htm Granovetter
M. [1978], "Threshold models of collective behavior", American
Journal of Sociology, 83(6), 1420-1443. Moody, J. and
D.R. White [2002], "Social Cohesion and Embeddedness: A Hierarchical
Conception of Social Groups", American Journal of Sociology
(submitted) http://tanzeem.www.media.mit.edu/people/tanzeem/cohn/CoHN.htm While
questions about social cohesion lie at the core of our discipline, no
clear definition of cohesion exists. We present a definition of social
cohesion based on network connectivity that leads to an operationalization
of social embeddedness. We define cohesiveness as the minimum number
of actors who, if removed from a group, would disconnect the group.
This definition generates hierarchically nested groups, where highly
cohesive groups are embedded within less cohesive groups. We discuss
the theoretical implications of this definition and demonstrate the
empirical applicability of our conception of nestedness by testing the
predicted correlates of our cohesion measure within high school friendship
and interlocking directorate networks. Keywords: Social networks, social
theory, social cohesion, connectivity algorithm, embeddedness. Mahadevan
Venkatraman, Yu B., and Munindar P. Singh Venkatraman
M., Bin Yu, Singh M.P. [2001], "Trust and Reputation Management
in a Small-World Network", Working Paper Successful
commerce relies heavily upon the reputations that the different parties
acquire through their dealings with each other. We view an e-commerce
community as a social network, which supports reputations both for expertise
(providing good service) and helpfulness (providing good referrals).
We study the small-world phenomena such as the emergence of subcommunities,
and pivot vertices (which link different subcommunities) in the social
network, and discovered that the quality of the network improves with
the presence of a pivot. J. Kleinberg
J. [1999], "The small-world phenomenon: An algorithmic perspective",
Cornell Computer Science Technical Report, 99-1776, October 1999. Long
a matter of folklore, the "small-world phenomenon" the principle
that we are all linked by short chains of acquaintances was inaugurated
as an area of experimental study in the social sciences through the
pioneering work of Stanley Milgram in the 1960's. This work was among
the first to make the phenomenon quantitative, allowing people to speak
of the "six degrees of separation" between any two people
in the United States. Since then, a number of network models have been
proposed as frameworks in which to study the problem analytically. One
of the most refined of these models was formulated in recent work of
Watts and Strogatz; their framework provided compelling evidence that
the small-world phenomenon is pervasive in a range of networks arising
in nature and technology, and a fundamental ingredient in the evolution
of the World Wide Web. But existing models are insufficient to explain
the striking algorithmic component of Milgram's original findings: that
individuals using local information are collectively very effective
at actually constructing short paths between two points in a social
network. Although recently proposed network models are rich in short
paths, we prove that no decentralized algorithm, operating with local
information only, can construct short paths in these networks with non-negligible
probability. We then define an infinite family of network models that
naturally generalizes the Watts-Strogatz model, and show that for one
of these models, there is a decentralized algorithm capable of finding
short paths with high probability. More generally, we provide a strong
characterization of this family of network models, showing that there
is in fact a unique model within the family for which decentralized
algorithms are effective. Gladwell M.
[1999], Six degrees of Lois Weisberg, New Yorker, pages 52–63,
Jan. 1999. January 11 issue. Watts D. J.,
Strogatz S. H. [1998], Collective dynamics of ‘small-world’ networks.
Nature, 393:440–442, June 1998. Yu B.,
Venkatraman M., Singh M. P.[2000], An adaptive social network for information
access: Theoretical and experimental results, Applied Artificial
Intelligence, 2000. To appear. Luis
A. Nunes Amaral, Antonio Scala, Marc Barthélémy, and H. Eugene Stanley Amaral, L.
A. N., Scala, A., Barthelemy, M., and Stanley, H. E. [2000], "Classes
of behavior of small-world networks", Working Paper http://xxx.lanl.gov/abs/cond-mat/0001458 Small-world
networks are the focus of recent interest because they appear to circumvent
many of the limitations of either random networks or regular lattices
as frameworks for the study of interaction networks of complex systems.
Here, we report an empirical study of the statistical properties of
a variety of diverse real-world networks. We present evidence of the
occurrence of three classes of small-world networks: (a) scale-free
networks, characterized by a vertex connectivity distribution that decays
as a power law; (b) broad-scale networks, characterized by a connectivity
distribution that has a power-law regime followed by a sharp cut-off;
(c) single-scale networks, characterized by a connectivity distribution
with a fast decaying tail. Moreover, we note for the classes of broad-scale
and single-scale networks that there are constraints limiting the addition
of new links. Our results suggest that the nature of such constraints
may be the controlling factor for the emergence of different classes
of networks. Ronald
S. Burt Burt Ronald
S. [2002], "Bridge decay", Social Networks, Volume
24, Issue 4, October 2002. Abstract Frans
van Dijk, Joep Sonnemans, and
Frans van Winden Van
Dijk F., Sonnemans J., van Winden F. [2002], "Social
ties in a public good experiment", Journal of Public Economics,
Volume 85, Issue 2, August 2002, Pages 275-299 Abstract David
Krackhardt, The Heinz School of Public Policy and Management, and The
Graduate School of Industrial Administration, Carnegie Mellon University,
Pittsburgh, PA, USA Martin
Kilduff, Department of Management and Organization, Smeal College of
Business Administration, The Pennsylvania State University, University
Park, PA 16802, USA Krackhardt D.,
Kilduff M. [2002], "Structure, culture and Simmelian ties
in entrepreneurial firms", Social Networks, Volume 24, Issue
3, July 2002, Pages 279-290 Abstract Scale-free
networks and Internet topology Réka
Albert, Hawoong Jeong and Albert-Laszlo Barabasi Barabasi,
A. and Albert, R [1999], "Emergence of scaling in random networks",
Science 286, 509-512 http://tanzeem.www.media.mit.edu/people/tanzeem/cohn/CoHN.htm Systems
as diverse as genetic networks or the World Wide Web are best described
as networks with complex topology. A common property of many large networks
is that the vertex connectivities follow a scale-free power-law distribution.
This feature was found to be a consequence of two generic mechanisms:
(i) networks expand continuously by the addition of new vertices, and
(ii) new vertices attach preferentially to sites that are already well
connected. A model based on these two ingredients reproduces the observed
stationary scale-free distributions, which indicates that the development
of large networks is governed by robust self-organizing phenomena that
go beyond the particulars of the individual systems. Barabasi
A.L. [2002], Linked: The New Science of Networks, Perseus Publishing,
Cambridge, Mass. Albert R.,
Jeong H., Barabási A.L. [2000], "The Internet's Achilles'
heel: error and attack tolerance of complex networks", Nature,
406 378 Barabási A.L.,
Albert R. [1999], "Emergence of scaling in random networks",
Science, 286 509 Bianconi G.,
Barabási A.L. [2001], "BoseEinstein condensation in complex
networks", Phys. Rev. Lett., 86 5632 Broder A.
et al. [2000], "Graph structure in the web", Comput. Netw.,
33 309 D S Callaway D.S.,
et al. [2000], "Network robustness and fragility: percolation on
random graphs", Phys. Rev. Lett., 85 5468 Cohen R.
et al. [2000], "Resilience of the Internet to random breakdowns",
Phys. Rev. Lett., 85 4626 Michalis
Faloutsos Petros
Faloutsos Christos
Faloutsos Faloutsos M.,
Faloutsos P, Faloutsos C [1999], "On power-law relationships
of the Internet topology", ACM SIGCOMM Computer Communication
Review, Vol. 29, Iss. 4 (October 1999). Despite
the apparent randomness of the Internet, we discover some surprisingly
simple power-laws of the Internet topology. These power-laws hold for
three snapshots of the Internet, between November 1997 and December
1998, despite a 45% growth of its size during that period. We show that
our power-laws fit the real data very well resulting in correlation
coefficients of 96% or higher. Our observations provide a novel perspective
of the structure of the Internet. The power-laws describe concisely
skewed distributions of graph properties such as the node outdegree.
In addition, these power-laws can be used to estimate important parameters
such as the average neighborhood size, and facilitate the design and
the performance analysis of protocols. Furthermore, we can use them
to generate and select realistic topologies for simulation purposes. Adamic, L.
A., and B.. A. Huberman. "Power-law distribution of the world wide
web", Science, 287:2115a, 2000. S
Lawrence and C L Giles 1999 Accessibility of information on the Web
Nature 400 107 Romualdo
Pastor-Satorras : Departament de Física i Enginyeria Nuclear, Universitat
Politècnica de Catalunya, Campus Nord, Mòdul B4, 08034 Barcelona, Spain
Alessandro
Vespignani : The Abdus Salam International Centre for Theoretical Physics
(ICTP), P.O. Box 586, 34100 Trieste, Italy The
Internet has a very complex connectivity recently modeled by the class
of scale-free networks. This feature, which appears to be very efficient
for a communications network, favors at the same time the spreading
of computer viruses. We analyze real data from computer virus infections
and find the average lifetime and persistence of viral strains on the
Internet. We define a dynamical model for the spreading of infections
on scale-free networks, finding the absence of an epidemic threshold
and its associated critical behavior. This new epidemiological framework
rationalizes data of computer viruses and could help in the understanding
of other spreading phenomena on communication and social networks. Broder
A., Kumar R., Maghoul F., Raghavan P., Rajagopalan S.,
Stata R. [2000], "Graph structure in the web", 9th
International World Wide Web Conference, Amsterdam, May 15 -
19, 2000. http://www9.org/w9cdrom/160/160.html Abstract D
J Watts and S H Strogatz [1998], "Collective dynamics of "small-world"
networks", Nature 393440 Réka A., Jeong
H., Barabasi A.L. [1999], "The diameter of the world wide web",
Working Paper, We
use local connectivity measurements to construct a topological model
of the www, allowing us to explore and characterize the large scale
properties of the web. To determine the local connectivity of the www,
we constructed a robot, that adds to its database all URLs found on
a document and recursively follows these to retrieve the related documents
and URLs. Réka A., Jeong
H., Barabasi A.L. [2000], "Topology of evolving networks: local
events and universality", Working Paper Networks
grow and evolve by local events, such as the addition of new nodes and
links, or rewiring of links from one node to another. We show that depending
on the frequency of these processes two topologically different networks
can emerge, the connectivity distribution following either a generalized
power-law or an exponential. We propose a continuum theory that predicts
these two regimes as well as the scaling function and the exponents,
in good agreement with the numerical results. Finally, we use the obtained
predictions to fit the connectivity distribution of the network describing
the professional links between movie actors. Bianconi G.,
Barabasi A.L. [2000], "Bose-Einstein condensation in complex networks",
Working Paper. The
evolution of many complex systems, including the world wide web, business
and citation networks is encoded in the dynamic web describing the interactions
between the system's constituents. Despite their irreversible and non-equilibrium
nature these networks follow Bose statistics and can undergo Bose-Einstein
condensation. Addressing the dynamical properties of these non-equilibrium
systems within the framework of equilibrium quantum gases predicts that
the "first-mover-advantage", "fit-get-rich" and
"winner-takes-all" phenomena observed in competitive systems
are thermodynamically distinct phases of the underlying evolving networks. Alberto Medina, Anukool Lakhina,
Ibrahim Matta, John Byers Medina
A., Matta I., Byers J. [2000], "On the Origin of Power Laws in
Internet Topologies", Working Paper Recent empirical studies [7] have shown that Internet
topologies exhibit power laws of the form y = x for the following relationships:
(P1) outdegree of node (domain or router) versus rank; (P2) number of
nodes versus outdegree; (P3) number of node pairs within a neighborhood
versus neighborhood size (in hops); and (P4) eigenvalues of the adjacency
matrix versus rank. However, causes for the appearance of such power
laws have not been convincingly given. In this paper, we examine four
factors in the formation of Internet topologies. These factors are (F1)
preferential connectivity of a new node to existing nodes; (F2) incremental
growth of the network; (F3) distribution of nodes... Medina
A., Matta I., Byers J. [2001], "Universal Topology Generation from
a User’s Perspective", Working Paper Effective
engineering of the Internet is predicated upon a detailed understanding
of issues such as the large-scale structure of its underlying physical
topology, the manner in which it evolves over time, and the way in which
its constituent components contribute to its overall function. Unfortunately,
developing a deep understanding of these issues has proven to be a challenging
task, since it in turn involves solving difficult problems such as mapping
the actual topology, characterizing it, and developing models that capture
its emergent behavior. Consequently, even though there are a number
of topology models, it is an open question as to how representative
the topologies they generate are of the actual Internet. Our goal is
to produce a topology generation framework which improves the state
of the art and is based on design principles which include representativeness,
inclusive-ness, and interoperability. Representativeness leads to synthetic
topologies that accurately reflect many aspects of the actual Internet
topology (e.g. hierarchical structure, degree distribution, etc.). Inclusiveness
combines the strengths of as many generation models as possible in a
single generation tool. Interoperability provides interfaces to widely-used
simulation and visualization applications such as ns and SSF. We call
such a tool a universal topology generator. In this paper we discuss
the design, implementation and usage of the BRITE universal topology
generation tool that we have built. We also describe the BRITE Analysis
Engine, BRIANA, which is an independent piece of software designed and
built upon BRITE design goals of flexibility and extensibility. The
purpose of BRIANA is to act as a repository of analysis routines along
with a user–friendly interface that allows its use on different topology
formats. Marshall
Van Alstyne Erik Brynjolfsson Brynjolfsson E.,
Marshall Van Alstyne [1997], "The Net Effect: Modeling and Measuring
the Integration of Electronic Communities", Working Paper. Information technology can link geographically
separated people and help them locate interesting or compatible resources.
Although these attributes have the potential to bridge gaps and unite
communities, they also have the potential to fragment interaction and
divide groups by leading people to spend more time on special interests
and by screening out less preferred contact. This paper introduces precise
measures of information integration and develops a model of individual
knowledge profiles and community affiliation. These factors suggest
different conditions under which improved access, search, and screening
can integrate or fragment interaction. As IT capabilities continue to
improve, preferences, not geography or technology, become the key determinants
of community boundaries. . David
M. Pennock, GaryW. Flake, Steve Lawrence, Eric J. Glover, C. Lee Giles Pennock D.M., Flake G.W.,
Lawrence S., Glover E.J., Giles C.L. [2002], "Winners
don’t take all: Characterizing the competition for links on the web",
Proceedings of the National Academy of Sciences, Volume 99, Issue
8, pp. 5207–5211, April, 2002. As a whole, the World Wide Web displays
a striking “rich get richer” behavior, with a relatively small number
of sites receiving a disproportionately large share of hyperlink references
and traffic. However, hidden in this skewed global distribution, we
discover a qualitatively different and considerably less biased link
distribution among subcategories of pages—for example, among all university
homepages or all newspaper homepages. While the connectivity distribution
over the entire web is close to a pure power law, we find that the distribution
within specific categories is typically unimodal on a log scale, with
the location of the mode, and thus the extent of the “rich get richer”
phenomenon, varying across different categories. Similar distributions
occur in many other naturally-occurring networks, including research
paper citations, movie actor collaborations, and US power grid connections.
A simple generative model, incorporating a mixture of preferential and
uniform attachment, quantifies the degree to which the rich nodes grow
richer, and how new (and poorly-connected) nodes can compete. The model
accurately accounts for the true connectivity distributions of category-specific
web pages, the web as a whole, and other social networks. William
Aiello, Fan Chung, Linyuan Lu William Aiello W., Chung
F., Lu L. [2001], "Random evolution in massive graphs",
IEEE Symposium on Foundations of Computer Science. Abstract Ravi
Kumar, Prabhakar Raghavan, Sridhar Rajagopalan, Andrew Tomkins Kumar R., Raghavan P.,
Rajagopalan S., Tomkins A. [1999], "Trawling the web
for emerging cyber-communities", Working Paper, IBM Almaden
Research Center Abstract: Gopal
Pandurangan, Prabhakar Raghavany, Eli Upfal http://www.cs.brown.edu/people/eli/ Pandurangan G.,
Raghavany P., Upfal E., [2001], "Building Low-Diameter
P2P Networks", 42nd Annual Symposium on Foundations of Computer
Science (FOCS01), pp. 492-499 Abstract Chen Q., Chang
H., Govindan R., Jamin S., Shenker S.J., Willinger W. [2002], "The
Origin of Power Laws in Internet Topologies Revisited", Proc.
of IEEE Infocom 2002. Abstract Tangmunarunkit H., Govindan
R., Jamin S., Shenker S., Willinger W. [2001], "Network Topologies,
Power Laws, and Hierarchy", Tech Report USC-CS-01-746. Abstract Newman M.E.J., Watts
D.J., Strogatz S.H. [2001], "Random graph models of social networks",
Working Paper, Santa Fe Institute. We describe some new exactly solvable
models of the structure of social networks, based on random graphs with
arbitrary degree distributions. We give models both for simple unipartite
networks, such as acquaintance networks, and bipartite networks, such
as affiliation networks. We compare the predictions of our models to
data for a number of real-world social networks and find that in some
cases the models are in remarkable agreement with the data, while in
others the agreement is poorer, perhaps indicating the presence of additional
social structure in the network that is not captured by the random graph.
Newman M.E.J. [2002],
"Random Graphs as Models of Networks", Working Paper,
Santa Fe Institute. http://www.santafe.edu/sfi/publications/wpabstract/200202005 Abstract:
Tony
H. Grubesic, Grubesic
T. H. [2002], "Spatial dimensions of Internet activity", Telecommunications
Policy, Volume 26, Issues 7-8, August-September 2002. Abstract Sean
P. Gormana and Edward J. Malecki, Gormana
S. P., Malecki E. J. [2002],"Fixed and fluid: stability
and change in the geography of the Internet", Telecommunications
Policy, Volume 26, Issues 7-8, August-September 2002. Abstract Quah D. [2000],
"Internet cluster emergence", European Economic Review,
vol. 44, pp. 1032–1044. Quah D. [2001],
"Technology Dissemination and the Economic Growth: Some Lessons
for the New Economy", LSE Economics Department, April 2001. Wimmer B. S.,
Townsend A., Chezum B.E. [2000], "Information Technologies
and the Middleman: The Changing Role of Information Intermediaries in
an Information–Rich Economy", Journal of Labor Research,
vol. XXI, n°3, Summer, pp. 407–418. Venkatesh
Bala, Sanjeev Goyal Bala V., S.
Goyal [2000], "A Strategic Analysis of Network Reliability",
Review of Economic Design Vol 5- 3 (http://www.few.eur.nl/few/people/goyal/). We
consider a non-cooperative model of information networks where communication
is costly and not fully reliable. We examine the nature of Nash networks
and efficient networks. We find that if the society is large, and link
formation costs are moderate, Nash networks as well as efficient networks
will be `super-connected', i.e. every link is redundant in the sense
that the network remains connected even after the link is deleted. This
contrasts with the properties of a deterministic model of information
decay, where Nash networks typically involve unique paths between agents.
We also find that if costs are very low or very high, or if links are
highly reliable then there is virtually no conflict between efficiency
and stability. However, for intermediate values of costs and link reliability,
Nash networks may be underconnected relative to the social optimum. Bala V., Goyal S.
[2001], "Conformism and Diversity under Social Learning",
Economic Theory, Vol.17, Iss.1, p. 101-120 http://www.few.eur.nl/few/people/goyal/. When
there are competing technologies or products with unknown payoffs an
important question is which technology will prevail and whether technologies
with different payoffs can coexist in the long run. In this paper, we
use a social learning model with local interactions to study this question.
We show that the adoption of technologies as well as the prospects of
conformism/diversity depend crucially on the nature of information flows
and the heterogeneity of individual preferences in a society. In a society
with homogeneous individuals, a superior technology drives out an inferior
technology; however, two technologies with the same payoffs can coexist
under certain interaction patterns. We also examine a society with individuals
who have heterogeneous preferences. In this setting, we illustrate how
heterogeneity of individual preferences can combine with local interaction
to create information barriers that lead technologies with different
payoffs to coexist, in the long run. Sergio Currarini, Massimo
Morelli Currarini S.,
Morelli M. [2000], "Network formation with sequential demands",
Review of Economic Design, Vol 5- 3 http://econpapers.hhs.se/article/sprreecde/ Matthew
O. Jackson Jackson
M.O. [2001], "The Stability and Efficiency of Economic and Social
Networks", Working Paper This
paper studies the formation of networks among individuals. The focus
is on the compatibility of overall societal welfare with individual
incentives to form and sever links. The paper reviews and synthesizes
some previous results on the subject, and also provides new results
on the existence of pairwise-stable networks and the relationship between
pairwise stable and efficient networks in a variety of contexts and
under several definitions of efficiency. |