IDEAS home Printed from https://ideas.repec.org/a/taf/gmasxx/v43y2019i3p123-146.html
   My bibliography  Save this article

An option-theoretic model of a reputation network

Author

Listed:
  • Kim R. Sawyer
  • André F. Gygax

Abstract

This paper constructs a new theory of social networks based on reputation. The model assumes that reputation is an asset and that individuals connect by buying options on the reputation of others. In networking, individuals construct portfolios of call options to leverage the reputations of others and put options to hedge the connections with others. A network then consists of portfolios of reputation options. The option model confers advantages not present in existing models. First, the payoff to connecting is the payoff on a portfolio of reputation options. Second, the network forms as individuals take option positions; the network evolves as individuals adjust those positions. Third, networking strategies become option strategies. The model allows for insights into network structure, the price of connecting and the value of connecting.

Suggested Citation

  • Kim R. Sawyer & André F. Gygax, 2019. "An option-theoretic model of a reputation network," The Journal of Mathematical Sociology, Taylor & Francis Journals, vol. 43(3), pages 123-146, July.
    • Handle: RePEc:taf:gmasxx:v:43:y:2019:i:3:p:123-146
    DOI: 10.1080/0022250X.2018.1545769
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/0022250X.2018.1545769
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/0022250X.2018.1545769?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:gmasxx:v:43:y:2019:i:3:p:123-146. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/gmas .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.