The dynamics of closeness and betweenness
AbstractAlthough both betweenness and closeness centrality are claimed to be important for the effectiveness of someones network position, it has not been explicitly studied which networks emerge if actors follow incentives for these two positional advantages. We propose such a model and observe that network dynamics differ considerably in a scenario with either betweenness or closeness incentives compared to a scenario in which closeness and betweenness incentives are combined. Considering social consequences, we find low clustering when actors strive for either type of centrality. Surprisingly, actors striving for closeness are likely to reach networks with relatively low closeness and high betweenness, while this is the other way round for actors striving for betweenness. This shows that in both situations the network formation process implies a social dilemma in which the social optimum is not reached by individual optimizing.
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 InfoPaper provided by Bielefeld University, Center for Mathematical Economics in its series Working Papers with number 398.
Length: 35 pages
Date of creation: Jul 2008
Date of revision:
networks; closeness centrality; betweenness centrality; actor utility; network dynamics; social dilemma;
Find related papers by JEL classification:
- D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation
- C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
- L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Jackson, Matthew O. & Wolinsky, Asher, 1996.
"A Strategic Model of Social and Economic Networks,"
Journal of Economic Theory,
Elsevier, vol. 71(1), pages 44-74, October.
- Matthew O. Jackson & Asher Wolinsky, 1995. "A Strategic Model of Social and Economic Networks," Discussion Papers 1098R, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
- Matthew O. Jackson & Asher Wolinsky, 1994. "A Strategic Model of Social and Economic Networks," Discussion Papers 1098, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
- Goyal, Sanjeev & Vega-Redondo, Fernando, 2007. "Structural holes in social networks," Journal of Economic Theory, Elsevier, vol. 137(1), pages 460-492, November.
- Andrea Galeotti & Sanjeev Goyal, 2002.
"Network Formation with Heterogeneous Players,"
Tinbergen Institute Discussion Papers
02-069/1, Tinbergen Institute.
- Gert Sabidussi, 1966. "The centrality index of a graph," Psychometrika, Springer, vol. 31(4), pages 581-603, December.
- Kris De Jaegher & Jurjen Kamphorst, 2008. "Network formation with decreasing marginal benefits of information," Working Papers 08-16, Utrecht School of Economics.
- Dekker, D.J. & Franses, Ph.H.B.F. & Krackhardt, D., 2001. "An Equilibrium-Correction Model for Dynamic Network Data," Research Paper ERS-2001-39-MKT, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus Uni.
- Venkatesh Bala & Sanjeev Goyal, 2000. "A Noncooperative Model of Network Formation," Econometrica, Econometric Society, vol. 68(5), pages 1181-1230, September.
- Sanjeev Goyal & Sumit Joshi, 2006. "Unequal connections," International Journal of Game Theory, Springer, vol. 34(3), pages 319-349, October.
- Berno Buechel, 2007. "Network formation with closeness incentives," Working Papers 395, Bielefeld University, Center for Mathematical Economics.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dr. Frederik Herzberg).
If references are entirely missing, you can add them using this form.