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.
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Bibliographic InfoArticle provided by Elsevier in its journal Physica A: Statistical Mechanics and its Applications.
Volume (Year): 324 (2003)
Issue (Month): 1 ()
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Web page: http://www.journals.elsevier.com/physica-a-statistical-mechpplications/
Econophysics; Wealth distributions; Complex networks; Economy dynamics;
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- 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.
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