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The Impact of the Subgroup Structure on the Evolution of Networks: An Economic Model of Network Evolution

  • Kibae Kim

    ()

  • Jorn Altmann

    ()

  • Junseok Hwang

    (Technology Management, Economics, and Policy Program (TEMEP), Seoul National University)

One of the most important properties of self-organized networks is their scale-free property. Prior research proved empirically and theoretically that scale-free networks emerge under the preferential attachment rule. However, a few empirical studies also show that empirical networks diverge from the structure of scale-free networks. Empirical networks exhibit a lower exponent of the power law distribution than constructed scale-free networks. Our research aims at establishing a simple evolutionary network model that explains this difference. The results of our model suggest that there are two reasons for this discrepancy. First, as already known, additional links between existing nodes distort the scale-free feature. Second, boundaries between subgroups (groups of network nodes) distort the degree distribution. In general, we believe that our evolutionary model may be applicable not only to describe the structural evolution of networks but also to make network design recommendations in a variety of areas such as WWW-hyperlink networks, business collaboration networks, Peer-To-Peer Networks, and Web2.0 service networks.

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File URL: ftp://147.46.237.98/DP-56.pdf
File Function: First version, 2010
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Paper provided by Seoul National University; Technology Management, Economics, and Policy Program (TEMEP) in its series TEMEP Discussion Papers with number 201056.

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Length: 24 pages
Date of creation: Feb 2010
Date of revision: Feb 2010
Publication status: Published in NetSciCom2010, IEEE International Workshop on Network Science for Communication Networks, in conjunction with IEEE Infocom 2010, San Diego, USA, March 2010
Handle: RePEc:snv:dp2009:201056
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  1. Wagner, Caroline S. & Leydesdorff, Loet, 2005. "Network structure, self-organization, and the growth of international collaboration in science," Research Policy, Elsevier, vol. 34(10), pages 1608-1618, December.
  2. Andrea Galeotti & Sanjeev Goyal & Jurjen Kamphorst, 2003. "Network Formation with Heterogeneous Players," Economics Discussion Papers 562, University of Essex, Department of Economics.
  3. Junseok Hwang & Jorn Altmann & Kibae Kim, 2009. "The Structural Evolution of the Web2.0 Service Network," TEMEP Discussion Papers 200914, Seoul National University; Technology Management, Economics, and Policy Program (TEMEP), revised Sep 2009.
  4. Fu, Feng & Liu, Lianghuan & Wang, Long, 2008. "Empirical analysis of online social networks in the age of Web 2.0," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 387(2), pages 675-684.
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