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How Network Visibility and Strategic Networking Leads to the Emergence of Certain Network Characteristics: A Complex Adaptive System Approach

Listed author(s):
  • Somayeh Koohborfardhaghighi

    ()

    (College of Engineering, Seoul National University)

  • Jorn Altmann

    ()

    (College of Engineering, Seoul National University)

Person-to-person interactions within an organization form a network of people. Changes of the structural properties of these networks are caused through a variety of dynamic processes among the people. We argue in this paper that there is a feedback loop between individual actions and the network structure. Therefore, a proper interaction model is needed to explain the emerging structural changes among networked individuals. According to our proposed interaction model, which is based on a complex adaptive system approach, changes in the network properties are consequences of four factors: (1) the initial underlying network structures; (2) the process of network growth; (3) the adoption of strategic responses to what other individuals do in the network; and (4) the network visibility. The experimental results show that all of these factors have influence. If the process of network growth triggers strategic responses of all direct neighbors, we observe a heavy drop in the average shortest path length between the individuals. The value of the average shortest path length shrinks to three, even independently of the visibility of the global network topology. We observe the same trend for the clustering coefficient. Fluctuations in the clustering coefficients are not significant, if visibility of the network topology is set to a high value. However, in the presence of only small number of strategic responses and a high network visibility, a short average shortest path length and a high clustering coefficient can be observed.

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File URL: ftp://147.46.237.98/DP-130.pdf
File Function: First version, 2016
Download Restriction: no

Paper provided by Seoul National University; Technology Management, Economics, and Policy Program (TEMEP) in its series TEMEP Discussion Papers with number 2016130.

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Length: 19 pages
Date of creation: Aug 2016
Date of revision: Aug 2016
Publication status: Published in Proceedings of the 18th International Conference on Electronic Commerce, ICEC2016.
Handle: RePEc:snv:dp2009:2016130
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  1. 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.
  2. Buechel, Berno, 2011. "Network formation with closeness incentives," Center for Mathematical Economics Working Papers 395, Center for Mathematical Economics, Bielefeld University.
  3. Gallo Edoardo, 2012. "Small World Networks with Segregation Patterns and Brokers," Review of Network Economics, De Gruyter, vol. 11(3), pages 1-46, September.
  4. M. Koenig & Claudio J. Tessone & Yves Zenou, "undated". "A Dynamic Model of Network Formation with Strategic Interactions," Working Papers CCSS-09-006, ETH Zurich, Chair of Systems Design.
  5. Lynne Hamill & Nigel Gilbert, 2009. "Social Circles: A Simple Structure for Agent-Based Social Network Models," Journal of Artificial Societies and Social Simulation, Journal of Artificial Societies and Social Simulation, vol. 12(2), pages 1-3.
  6. Barabási, Albert-László & Albert, Réka & Jeong, Hawoong, 1999. "Mean-field theory for scale-free random networks," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 272(1), pages 173-187.
  7. Thurow, Lester, 1983. "Dangerous Currents: The State of Economics," OUP Catalogue, Oxford University Press, number 9780198771838, April.
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