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Social Network Dynamics: Individual-Level Mechanisms and Aggregate Outcomes

Author

Listed:
  • Katarzyna Growiec
  • Jakub Growiec
  • Bogumil Kaminski

Abstract

Based on a calibrated computational multi-agent model with an overlapping generations structure, we investigate society-level consequences of creation and destruction of social ties at the individual level. The steady state of the simulated social network exhibits realistic small-world topology. We also find that societies whose social networks are relatively frequently reconfigured, display relatively higher social trust, willingness to cooperate, and economic performance - at the cost of lower social utility. Similar outcomes are found for societies where social tie dissolution is relatively weakly linked to family closeness.

Suggested Citation

  • Katarzyna Growiec & Jakub Growiec & Bogumil Kaminski, 2018. "Social Network Dynamics: Individual-Level Mechanisms and Aggregate Outcomes," KAE Working Papers 2018-036, Warsaw School of Economics, Collegium of Economic Analysis.
    • Handle: RePEc:sgh:kaewps:2018036
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    References listed on IDEAS

    as
    1. Katarzyna Growiec & Jakub Growiec & Bogumil Kaminski, 2017. "Mapping the Dimensions of Social Capital," KAE Working Papers 2017-025, Warsaw School of Economics, Collegium of Economic Analysis.
    2. Stephen Knack & Philip Keefer, 1997. "Does Social Capital Have an Economic Payoff? A Cross-Country Investigation," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 112(4), pages 1251-1288.
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    8. Christian Kroll, 2011. "Different Things Make Different People Happy: Examining Social Capital and Subjective Well-Being by Gender and Parental Status," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 104(1), pages 157-177, October.
    9. Katarzyna Growiec & Jakub Growiec, 2014. "Trusting Only Whom You Know, Knowing Only Whom You Trust: The Joint Impact of Social Capital and Trust on Happiness in CEE Countries," Journal of Happiness Studies, Springer, vol. 15(5), pages 1015-1040, October.
    10. Théophile T. Azomahou & Raouf Boucekkine & Bity Diene, 2009. "A closer look at the relationship between life expectancy and economic growth," International Journal of Economic Theory, The International Society for Economic Theory, vol. 5(2), pages 201-244, June.
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    14. repec:hal:spmain:info:hdl:2441/432sbils8u9t7qa99cii5psht1 is not listed on IDEAS
    15. Jakub Growiec & Bogumił Kamiński & Katarzyna Growiec, 2017. "Social Network Structure and The Trade-Off Between Social Utility and Economic Performance," EcoMod2017 10279, EcoMod.
    16. Rainer Winkelmann, 2009. "Unemployment, Social Capital, and Subjective Well-Being," Journal of Happiness Studies, Springer, vol. 10(4), pages 421-430, August.
    17. Katarzyna Growiec & Jakub Growiec & Bogumil Kaminski, 2017. "Mapping the Dimensions of Social Capital," Working Papers 2017-025, Warsaw School of Economics, Collegium of Economic Analysis.
    18. Growiec, Jakub & Growiec, Katarzyna, 2007. "Social Capital, Well-Being, and Earnings: Theory and Evidence from Poland," MPRA Paper 7071, University Library of Munich, Germany.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    social network structure; social network dynamics; social trust; willingness to cooperate; economic performance; computational multi-agent model.;
    All these keywords.

    JEL classification:

    • C63 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computational Techniques
    • D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification

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