nep-net New Economics Papers
on Network Economics
Issue of 2022‒10‒31
ten papers chosen by
Alfonso Rosa García
Universidad de Murcia

  1. Friendship networks with farsighted agents By Luo, Chenghong; Mauleon, Ana; Vannetelbosch, Vincent
  2. Efficient networks in connections models with heterogeneous nodes and links By Olaizola, Norma; Valenciano, Federico
  3. Sparse Production Networks By Andrew B. Bernard; Yuan Zi
  4. Products as Network: An Empirical Approximation of the Manufacturing Production Network in Indonesia By Massie, Natanael Waraney Gerald; Mangunsong, Carlos
  5. Key players in bullying networks By Atay, Ata; Mauleon, Ana; Schopohl, Simon; Vannetelbosch, Vincent
  6. On the design of public debate in social networks By Michel Grabisch; Antoine Mandel; Agnieszka Rusinowska
  7. Bring a Friend : Strengthening Women’s Social Networks and Reproductive Autonomy in India By Lnu,Anukriti; Herrera-Almanza,Catalina; Karra,Mahesh Venkat
  8. Social support and network formation in a small-scale horticulturalist population By Simpson, Cohen R.
  9. Capital social collectif et rites de passage By François Bousquet; Valérie Barbat
  10. Learning from Viral Content By Krishna Dasaratha; Kevin He

  1. By: Luo, Chenghong; Mauleon, Ana (Université catholique de Louvain, LIDAM/CORE, Belgium); Vannetelbosch, Vincent (Université catholique de Louvain, LIDAM/CORE, Belgium)
    Abstract: We reconsider de Marti and Zenou (2017) model of friendship network formation where individuals belong to two different communities and costs of forming links depend on community memberships. Many inefficient friendship networks such as segregation can arise when all individuals are myopic. Once there are myopic and farsighted individuals in both communities, we show that if there are enough farsighted individuals in the dominant community relatively to the number of individuals in the small community, then the friendship network where the smaller community ends up being assimilated into the dominant community is likely to emerge and is strongly and Pareto efficient. Moreover, this friendship network Pareto dominates the complete segregation network.
    Keywords: Friendship networks ; stable sets ; myopia ; farsightedness ; assimilation ; segregation
    JEL: A14 C70 D20
    Date: 2022–05–25
  2. By: Olaizola, Norma; Valenciano, Federico
    Abstract: We culminate the extension of the results on efficiency in the seminal connections model of Jackson and Wolinsky (1996), partially addressed in previous papers. In a model where both nodes and links are heterogeneous, we prove that efficiency is reached by networks with a particular type of architecture that we call "hierarchical flower networks". These networks have a unique non-trivial component, within which one of the nodes with a highest value is directly connected with the others in the component, among which some pairs are directly connected. Moreover, the greatest the sum of the values of two nodes, the greatest the strength of their connection, be it direct by a link or indirect by means of two links through the central node.
    Keywords: Networks; Connections model; Heterogeneity; Efficiency
    JEL: A14 C72 D85
    Date: 2022–10–05
  3. By: Andrew B. Bernard; Yuan Zi
    Abstract: Firm-to-firm connections in domestic and international production networks play a fundamental role in economic outcomes. Firm heterogeneity and the sparse nature of firm-to-firm connections implicitly discipline network structure. We find that a large group of well-established statistical relationships are not useful in improving our understanding of production networks. We propose an ``elementary" model for production networks based on random matching and firm heterogeneity and characterize the families of statistics and data generating processes that may raise underidentification concerns in more complex models. The elementary model is a useful benchmark in developing ``instructive" statistics and informing model construction and selection.
    JEL: F11 F14
    Date: 2022–09
  4. By: Massie, Natanael Waraney Gerald; Mangunsong, Carlos
    Abstract: This study aims to characterise and represent the Indonesian manufacturing sector as a production network. We specifically define any relationship between any two products in the network as a relationship that one product is used as input to produce the other, akin to the input-output models but in a much-disaggregated level of 10-digit product level. This study utilises the Indonesian annual survey of manufacturing firms, specifically the 2017 data, to construct a product-level network of industries. Using the constructed network, this study discusses which products and sectors in the Indonesian manufacturing sector are more well-connected to others, using different centrality measures commonly discussed in network theory. We find that, generally, low-to-medium technology products are the more central products in Indonesian manufacturing. We also compare our framework with other well-established product network frameworks and discuss possible further works using our framework.
    Keywords: Product network; manufacturing sector; Indonesia
    JEL: L1 L14 L6 O14
    Date: 2022–08–05
  5. By: Atay, Ata; Mauleon, Ana (Université catholique de Louvain, LIDAM/CORE, Belgium); Schopohl, Simon; Vannetelbosch, Vincent (Université catholique de Louvain, LIDAM/CORE, Belgium)
    Abstract: Individuals are embedded in a network of relationships and they can be victims, bystanders, or perpetrators of bullying and harassment. Each individual decides non-cooperatively how much effort to exert in preventing misbehavior. Each indi- vidual’s optimal effort depends on the contextual effect, the social multiplier effect and the social conformity effect. We characterize the Nash equilibrium and we derive an inter-centrality measure for finding the key player who once isolated increases the most the aggregate effort. An individual is more likely to be the key player if she is influencing many other individuals, she is exerting a low effort because of her characteristics, and her neighbors are strongly influenced by her. The key player policy increases substantially the aggregate effort and the targeted player should never be selected randomly. The key player is likely to remain the key player in presence of social workers except if she is becoming much less influential due to her closeness to social workers. Finally, we consider alternative policies (e.g. training bystanders for helping victims) and compare them to the policy of isolating the key player.
    Keywords: Social networks ; bullying ; harassment ; peer effects ; key player ; conformity ; #MeToo
    JEL: A14 C72 D85 Z13
    Date: 2022–05–23
  6. By: Michel Grabisch (CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique, PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris sciences et lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, UP1 - Université Paris 1 Panthéon-Sorbonne); Antoine Mandel (CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique, PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris sciences et lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, UP1 - Université Paris 1 Panthéon-Sorbonne); Agnieszka Rusinowska (CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique, PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris sciences et lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, CNRS - Centre National de la Recherche Scientifique)
    Abstract: We propose a model of the joint evolution of opinions and social relationships in a setting where social influence decays over time. The dynamics are based on bounded confidence: social connections between individuals with distant opinions are severed while new connections are formed between individuals with similar opinions. Our model naturally gives raise to strong diversity, i.e., the persistence of heterogeneous opinions in connected societies, a phenomenon that most existing models fail to capture. The intensity of social interactions is the key parameter that governs the dynamics. First, it determines the asymptotic distribution of opinions. In particular, increasing the intensity of social interactions brings society closer to consensus. Second, it determines the risk of polarization, which is shown to increase with the intensity of social interactions. Our results allow to frame the problem of the design of public debates in a formal setting. We hence characterize the optimal strategy for a social planner who controls the intensity of the public debate and thus faces a trade-off between the pursuit of social consensus and the risk of polarization. We also consider applications to political campaigning and show that both minority and majority candidates can have incentives to lead society towards polarization.
    Keywords: opinion dynamics,network formation,network fragility,polarization,institution design,political campaign
    Date: 2022–07–02
  7. By: Lnu,Anukriti; Herrera-Almanza,Catalina; Karra,Mahesh Venkat
    Abstract: This paper experimentally tests whether enabling individuals to incentivize others tosocialize with them can strengthen social networks and improve well-being. The paper examines family planningaccess for women in India, who tend to be socially isolated and for whom peer support may overcome intrahouseholdconstraints. Enabling women to jointly visit a clinic with other women not only increased social ties and strengthenedpeer engagement, but also increased clinic visits and contraceptive use. Moreover, this intervention was moreeffective in improving reproductive autonomy of women who faced greater intrahousehold opposition than an interventionthat only improved women’s own access to the clinic.
    Date: 2022–06–27
  8. By: Simpson, Cohen R.
    Abstract: Evolutionary studies of cooperation in traditional human societies suggest that helping family and responding in kind when helped are the primary mechanisms for informally distributing resources vital to day-to-day survival (e.g., food, knowledge, money, childcare). However, these studies generally rely on forms of regression analysis that disregard complex interdependences between aid, resulting in the implicit assumption that kinship and reciprocity drive the emergence of entire networks of supportive social bonds. Here I evaluate this assumption using individual-oriented simulations of network formation (i.e., Stochastic Actor-Oriented Models). Specifically, I test standard predictions of cooperation derived from the evolutionary theories of kin selection and reciprocal altruism alongside well-established sociological predictions around the self-organisation of asymmetric relationships. Simulations are calibrated to exceptional public data on genetic relatedness and the provision of tangible aid amongst all 108 adult residents of a village of indigenous horticulturalists in Nicaragua (11,556 ordered dyads). Results indicate that relatedness and reciprocity are markedly less important to whom one helps compared to the supra-dyadic arrangement of the tangible aid network itself.
    Keywords: British Academy Postdoctoral Fellowship (Grant Number: pf170158)
    JEL: C1
    Date: 2022–09–15
  9. By: François Bousquet (ESC PAU - Ecole Supérieure de Commerce, Pau Business School); Valérie Barbat (Kedge BS - Kedge Business School)
    Abstract: This research concerns collective social capital and, more specifically, the operating process of engagement networks. We equate the action of these networks with passing rituals. These rituals allow a business executive to move from one values' framework to another, under the effect of ritualized actions (recurring, symbolic, temporalized and spatialized actions). This assimilation makes it possible to mobilize a proven corpus in anthropology and management. The case study of the "Entreprendre Network" underlines the importance of the "separation phase" at the beginning of the operating process and shows the emergence of a community belonging of the subjects in the "preliminary phase". At odds with certain management studies, our study also shows that the liminary subject is not here in an ambiguous situation in-between two moral standards and that its reflexivity remains individual, without impact on the rules and practices of the network. From a methodological point of view, it suggests replacing the notion of proximity with that of spatiality. Finally, it establishes managerial recommendations on the collective conduct of individual transformations
    Abstract: La recherche conduite concerne le capital social collectif et, plus spécifiquement, le processus de fonctionnement des réseaux d'engagement. Nous assimilons l'action de ces réseaux à des rituels de passage. Ceux-ci permettent à un dirigeant d'entreprise de passer d'un référentiel de valeur à un autre, sous l'effet d'actions ritualisées (actions récurrentes, symboliques, temporalisées et spatialisées). Cette assimilation permet de mobiliser un corpus éprouvé en anthropologie et en management. L'étude du cas du Réseau Entreprendre souligne l'importance de la phase de séparation en début de processus et montre l'émergence d'une appartenance communautaire des sujets en phase liminaire. En décalage avec certains travaux en management, l'étude montre également que le sujet liminaire n'est pas ici dans une situation ambigüe entre deux référentiels moraux et que sa réflexivité demeure individuelle, sans impact sur les règles et pratiques du réseau. D'un point de vue méthodologique, elle propose de substituer la notion de proximité à celle de spatialité. Enfin, elle établit des préconisations managériales sur la conduite collective de transformations individuelles.
    Keywords: Cooperation,Preliminary phase,Engagement networks,Rites of passage,Social capital,Capital social collectif,Coopération,Phase liminaire,Réseaux d'engagement,Rites de passage
    Date: 2021–12–01
  10. By: Krishna Dasaratha; Kevin He
    Abstract: We study learning on social media with an equilibrium model of users interacting with shared news stories. Rational users arrive sequentially and each observes an original story (i.e., a private signal) and a sample of predecessors' stories in a news feed, then decides which stories to share. The observed sample of stories depends on what predecessors share as well as the sampling algorithm, which represents a design choice of the platform. We focus on how much the algorithm relies on virality (how many times a story has been previously shared) when generating news feeds. Showing users more viral stories can increase information aggregation, but it can also generate steady states where most shared stories are wrong. Such misleading steady states self-perpetuate, as users who observe these wrong stories develop wrong beliefs, and thus rationally continue to share them. We find that these bad steady states appear discontinuously, and even a benevolent platform designer either accepts these misleading steady states or induces fragile learning outcomes in the optimal design.
    Date: 2022–10

This nep-net issue is ©2022 by Alfonso Rosa García. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
General information on the NEP project can be found at For comments please write to the director of NEP, Marco Novarese at <>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.