Who's Who in Networks. Wanted: the Key Group
AbstractBallester, Calvo-Armengol, and Zenou (2006, Econometrica, 74/5, pp. 1403-17) show that in a network game with local payoff complementarities, together with global uniform payoff substitutability and own concavity effects, the intercentrality measure identifies the key player - a player who, once removed, leads to the optimal change in overall activity. In this paper we search for the key group in such network games, whose members are, in general, different from the players with the highest individual intercentralities. Thus the quest for a single target is generalized to a group selection problem targeting an arbitrary number of players, where the key group is identified by a group intercentrality measure. We show that the members of a key group are rather nonredundant actors, i.e., they are largely heterogenous in their patterns of ties to the third parties.
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Bibliographic InfoPaper provided by NET Institute in its series Working Papers with number 08-08.
Length: 25 pages
Date of creation: Sep 2008
Date of revision: Sep 2008
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social networks; centrality measures; intercentrality measures; clusters; policies;
Find related papers by JEL classification:
- A14 - General Economics and Teaching - - General Economics - - - Sociology of Economics
- 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
This paper has been announced in the following NEP Reports:
- NEP-ALL-2008-10-21 (All new papers)
- NEP-GTH-2008-10-21 (Game Theory)
- NEP-NET-2008-10-21 (Network Economics)
- NEP-SOC-2008-10-21 (Social Norms & Social Capital)
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