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on Network Economics |
| By: | Carlsson, Magnus (Department of Economics and Statistics); Finseraas, Henning (Norwegian University of Science and Technology) |
| Abstract: | The potential for peer pressure at the workplace is high since social interactions are frequent and we care about our social standing at work. Peer effects in politics at the workplace are important to understand since workplaces are becoming more sorted according to human capital, which implies that workplace peer effects can increase social inequalities in turnout. To quantify peer effects we use population-wide administrative data from Sweden that covers several general elections and allows us to measure the turnout of colleagues. To identify causal peer effects we use the turnout of peers of peers in previous elections as an instrumental variable. We estimate peer effects under different definitions of peer groups and leverage the richness of the data to estimate placebo peer effects. Our estimates suggest that workplace peer effects are politically important and contribute to social inequality in turnout. |
| Keywords: | Voter Turnout; Peer Effects; Social Networks; Workplace Dynamics |
| JEL: | D72 |
| Date: | 2024–10–02 |
| URL: | https://d.repec.org/n?u=RePEc:hhs:vxesta:2024_011 |
| By: | Squintani, Francesco (University of Warwick) |
| Abstract: | This paper brings together two major research streams in economic theory : information transmission in networks and strategic communication. The model embeds persuasion games of strategic disclosure by Milgrom (1981) into the communication network framework by Jackson and Wolinsky (1996). I find that the unique optimal network is a line in which players are ordered according to their bliss points. This ordered line is also pairwise-stable. This …nding stands in sharp contrast to previous results in network studies, that identify stars as the optimal and pairwise-stable networks when communication is non-strategic and subject to technological constraints. While stars are the most centralized minimally-connected networks, the line is the most decentralized one. These results may be especially relevant to political economy applications, such as networks of policymakers, interest groups, or judges |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:wrk:warwec:1520 |
| By: | Thibaud Deguilhem (LADYSS - Laboratoire Dynamiques Sociales et Recomposition des Espaces - UP1 - Université Paris 1 Panthéon-Sorbonne - UP8 - Université Paris 8 Vincennes-Saint-Denis - UPN - Université Paris Nanterre - CNRS - Centre National de la Recherche Scientifique - UPCité - Université Paris Cité); Juliette Schlegel (LADYSS - Laboratoire Dynamiques Sociales et Recomposition des Espaces - UP1 - Université Paris 1 Panthéon-Sorbonne - UP8 - Université Paris 8 Vincennes-Saint-Denis - UPN - Université Paris Nanterre - CNRS - Centre National de la Recherche Scientifique - UPCité - Université Paris Cité); Jean-Philippe Berrou (LAM - Les Afriques dans le monde - IEP Bordeaux - Sciences Po Bordeaux - Institut d'études politiques de Bordeaux - IRD - Institut de Recherche pour le Développement - Institut d'Études Politiques [IEP] - Bordeaux - UBM - Université Bordeaux Montaigne - CNRS - Centre National de la Recherche Scientifique); Ousmane Djibo (IRD Représentation du Niger - IRD - Institut de Recherche pour le Développement); Alain Piveteau (LAM - Les Afriques dans le monde - IEP Bordeaux - Sciences Po Bordeaux - Institut d'études politiques de Bordeaux - IRD - Institut de Recherche pour le Développement - Institut d'Études Politiques [IEP] - Bordeaux - UBM - Université Bordeaux Montaigne - CNRS - Centre National de la Recherche Scientifique) |
| Abstract: | For different currents in policy analysis as policy networks and the Advocacy Coalition Framework (ACF), identifying coalitions from policy beliefs and coordination between actors is crucial to a precise understanding of a policy process. Focusing particularly the relational dimension of ACF approaches linked with policy network analysis, determining policy subsystems from the actor collaborations and exchanges has recently begun offering fertile links with the network analysis. Studies in this way frequently apply Block Modeling and Community Detection (BMCD) strategies to define homogeneous political groups. However, the BMCD literature is growing quickly, using a wide variety of algorithms and interesting selection methods that are much more diverse than those used in the policy network analysis and particularly the ACF when this current focused on the collaboration networks before or after regarding the belief distance between actors. Identifying the best methodological option in a specific context can therefore be difficult and few ACF studies give an explicit justification. On the other hand, few BMCD publications offer a systematic comparison of real social networks and they are never applied to policy network datasets. This paper offers a new, relevant 5-Step selection method to reconcile advances in both the policy networks/ACF and BMCD. Using an application based on original African policy network data collected in Madagascar and Niger, we provide a useful set of practical recommendations for future ACF studies using policy network analysis: (i) the density and size of the policy network affect the identification process, (ii) the ''best algorithm'' can be rigorously determined by maximizing a novel indicator based on convergence and homogeneity between algorithm results, (iii) researchers need to be careful with missing data: they affect the results and imputation does not solve the problem. |
| Keywords: | Advocacy Coalition Framework, Block modeling, Community detection, Normalized Mutual Information, Policy networks |
| Date: | 2024–10 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-04689665 |
| By: | Ying Chen (University of Nottingham Ningbo China); Tom Lane (Newcastle University); Stuart McDonald (University of Nottingham Ningbo China) |
| Abstract: | Using a laboratory experiment, we study the evolution of economic networks in the context of fragmented social identity. We create societies in which members can initiate and delete links to others, and then earn payoffs from a public goods game played within their network. We manipulate whether the society initially consists of segregated or integrated identity groups, and vary whether societal mobility is high or low. Results show in-group favouritism in network formation. The effects of original network structure are long-lasting, with initially segregated societies permanently exhibiting more homophilic networks than initially integrated ones. Moreover, allowing greater social mobility results in networks becoming less rather than more integrated. This occurs in part because eviction from networks is based on out-group hostility when societal mobility is high, and on punishing free riders when mobility across groups is low. |
| Keywords: | social identity; social network; in-group bias; homophily; laboratory experiments |
| Date: | 2024–07 |
| URL: | https://d.repec.org/n?u=RePEc:not:notcdx:2024-07 |
| By: | Margherita Comola (Université Paris-Saclay (RITM) and Paris School of Economics); Agnieszka Rusinowska (CES, CNRS - University Paris 1 Panthéon-Sorbonne and Paris School of Economics); Marie Claire Villeval (CNRS, Université Lumière Lyon 2, Université Jean-Monnet Saint-Etienne, emlyon business school, GATE, 69007, Lyon, France; IZA, Bonn, Germany) |
| Abstract: | We experimentally investigate how players with opposing views compete for influence through strategic targeting in networks. We varied the network structure, the relative influence of the opponent, and the heterogeneity of the nodes’initial opinions. Although most players adopted a best-response strategy based on their relative influence, we also observed behaviors deviating from this strategy, such as the tendency to target central nodes and avoid nodes targeted by the opponent. Targeting is also affected by affinity and opposition biases, the strength of which depends on the distribution of initial opinions. |
| Keywords: | Network; Influence; Targeting; Competition; Laboratory Experiment |
| JEL: | C91 D85 D91 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:gat:wpaper:2411 |
| By: | Flora Bellone (Université Côte d'Azur, CNRS, GREDEG, France; OFCE, SciencePo); Arnaud Persenda (Université Côte d'Azur, CNRS, GREDEG, France); Paolo Zeppini (Université Côte d'Azur, CNRS, GREDEG, France; University of Bath, UK) |
| Abstract: | In this paper we revisit the emergence of China as a dominant player within the world economy by using the innovative framework of autocatalytic networks. Specifically, we build and apply an autocatalylic sets detection algorithm to a world input-output (IO) network built from the WIOD database, covering the 2000-2014 period. From this analysis, we identify two key turning points in the course of China development: First, the year 2005, when a Chinese densifying local autocatalytic set branched to a global one, unraveling the complementarity between domestic and international cyclical IO connections in the course of China development. Second, the year 2013, when key Chinese industries replace their U.S. counterparts at the core of the global autocatalytic set, revealing an economic rivalry between these two large economies specifically for their role and position in the global production network. |
| Keywords: | Autocatalytic networks, Trade, Input-Output tables, China |
| JEL: | F63 O14 D57 |
| Date: | 2024–09 |
| URL: | https://d.repec.org/n?u=RePEc:gre:wpaper:2024-26 |
| By: | Wei Cheng; Bruce A. Weinberg |
| Abstract: | The adoption of new ideas is critical for realizing their full potential and for advancing the knowledge frontier but it involves analyzing innovators, potential adopters, and the networks that connect them. This paper applies natural language processing, network analysis, and a novel fixed effects strategy to study how the aging of the biomedical research workforce affects idea adoption. We show that the relationship between adoption and innovator career age varies with network distance. Specifically, at short distances, young innovators’ ideas are adopted the most, while at greater network distances, mid-career innovators’ ideas have the highest adoption. The main reason for this contrast is that young innovators are close to young potential adopters who are more open to new ideas, but mid-career innovators are more central in networks. Overall adoption is hump-shaped in the career age of innovators. Simulations show that the aging of innovators and of potential adopters have comparable effects on the adoption of important new ideas. |
| JEL: | D85 J11 O33 |
| Date: | 2024–10 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:33030 |
| By: | Wasim Ahmed (University of Stirling); Dilek Önkal (Northumbria University [Newcastle]); Ronnie Das (Audencia Business School); Satish Krishnan (IIMK - Indian Institute of Management Kozhikode [Inde]); Femi Olan (Essex Business School - University of Essex); Mariann Hardey (Durham University); Alex Fenton (University of Chester) |
| Abstract: | Given the role of technology and social media during the COVID-19 pandemic, the aim of this paper is to conduct a social network analysis of four COVID-19 conspiracy theories that were spread during the pandemic between March to June 2020. Specifically, the paper examines the 5G, Film Your Hospital, Expose Bill Gates, and the Plandemic conspiracy theories. Identifying disinformation campaigns on social media and studying their tactics and composition is an essential step toward counteracting such campaigns. The current study draws upon data from the Twitter Search API and uses social network analysis to examine patterns of disinformation that may be shared across social networks with sabotaging ramifications. The findings are used to generate the Framework of Disinformation Seeding and Information Diffusion for understanding disinformation and the ideological nature of conspiracy networks that can support and inform future pandemic preparedness and counteracting disinformation. Furthermore, a Digital Mindfulness Toolbox (DigiAware) is developed to support individuals and organisations with their information management and decision-making both in times of crisis and as strategic tools for potential crisis preparation. MANAGERIAL RELEVANCEAt the organisational level, the spread of disinformation can lead to disruptions in business continuity planning, sporadic decision-making, exposure to high risk, and loss of trust and agility. Organisations need to be aware of the risks that come with using social media for communication because of the potential detrimental implications of disinformation. This is especially true during periods characterised by extreme uncertainty, such as global pandemics. To combat this issue, we recommend treating digital mindfulness as an essential foundation for vigilance and resilience at both personal and organisational levels. This study presents insights on detecting disinformation and fake news using social media analytics to identify key clusters and sharing patterns among conspiracy theory networks on Twitter. Our contribution to practice lies in our development of the DigiAware Toolbox and the Framework of Disinformation Seeding and Information Diffusion for understanding the ideological nature of disinformation networks which can be used in practice. |
| Date: | 2023–05–23 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-04692974 |
| By: | Thiago Christiano Silva; Sergio Rubens Stancato de Souza; Solange Maria Guerra; Iuri Lazier; Rodrigo Cesar de Castro Miranda |
| Abstract: | This paper uses a network-based framework to examine the propagation of exchange rate shocks through the economy. We use a comprehensive set of supervisory, granular, and unique datasets from Brazil to construct an economy-wide network of exposures from 2015 to 2022, which includes a representative set of financial institutions, both banking and nonbanking, the corporate sector, and bilateral exposure linkages encompassing credit and funding risks. Our findings reveal significant disparities in how exchange rate shocks impact different sectors. Financial institutions generally benefit from positive exchange rate shocks due to their net foreign-denominated assets, whereas nonfinancial firms incur losses, particularly those with substantial foreign debt. However, contagion effects indicate that even sectors that are initially better off can experience substantial indirect losses, highlighting the complexity of risks in the financial network. Despite vulnerabilities in segments such as development banks and non-bank financial institutions, adequate regulatory capital maintains and supports overall financial stability. These insights underscore the importance of incorporating network structures in regulatory frameworks and stress-testing methodologies, offering crucial implications for policymakers seeking to improve financial stability and mitigate systemic risks. |
| Date: | 2024–10 |
| URL: | https://d.repec.org/n?u=RePEc:bcb:wpaper:605 |