The small-world of economy: a speculative proposal
AbstractUsing the small-world approach we suggest a network model for the economy. Our basic assumption is that the economic agents prefer to make business with the big business. This assumption makes the preferential attachment the main mechanism for the evolution of the economic network. We hypothesize that the connectivity of the economic network should reflect the wealth distribution of the society which is considered to be an exponential truncated power law. The objective of this paper is to model qualitatively the wealth distribution of a society using concepts based on evolving network. Several alternatives of evolving networks are discussed in an economic context.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Elsevier in its journal Physica A: Statistical Mechanics and its Applications.
Volume (Year): 324 (2003)
Issue (Month): 1 ()
Contact details of provider:
Web page: http://www.journals.elsevier.com/physica-a-statistical-mechpplications/
Econophysics; Wealth distributions; Complex networks; Economy dynamics;
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Brendan Markey-Towler & John Foster, 2013. "Understanding the causes of income inequality in complex economic systems," Discussion Papers Series 478, School of Economics, University of Queensland, Australia.
- Stéphane Hallegatte & Fanny Henriet, 2008. "Assessing the Consequences of Natural Disasters on Production Networks: A Disaggregated Approach," Working Papers 2008.100, Fondazione Eni Enrico Mattei.
If references are entirely missing, you can add them using this form.