Economic Networks: What do we know and what do we need to know?
We examine the emergent field of economic networks and explore its ability to shed light on the global and volatile economy where credit, ownership, innovation, investment, and virtually every other economic activity is carried at a scale and scope that respects no geographical, organizational, or political boundaries. In this context, the study of economic networks and their dynamics must reflect the vast complexity of the interaction patterns and integrate it with a realistic account of the incentives and information that govern agents' behavior. The interplay of both has been shown to produce metastabilities, system crashes, and emergent structures in ways that are yet only poorly understood. Meeting this exciting scientific challenge requires a combination of time series analysis, complexity theory, and simulation with the analytical tools that have been developed by game theory, as well as graph and matrix theories. We argue that this will help achieving a better integration of theory and data models and provide a better understanding of the potentials and risks of modern economic systems.
|Date of creation:|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: +41 1 632 57 18
Fax: +41 1 632 10 47
Web page: http://web.sg.ethz.ch/wps
More information through EDIRC
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.:
- Andrea Galeotti & Sanjeev Goyal & Jurjen Kamphorst, 2003.
"Network Formation with Heterogeneous Players,"
Economics Discussion Papers
562, University of Essex, Department of Economics.
- Callander, Steven & Plott, Charles R., 2005. "Principles of network development and evolution: an experimental study," Journal of Public Economics, Elsevier, vol. 89(8), pages 1469-1495, August.
- M. Angeles Serrano & Marian Boguna & Alessandro Vespignani, 2007. "Patterns of dominant flows in the world trade web," Papers 0704.1225, arXiv.org.
- D. Garlaschelli & M. I. Loffredo, 2005. "Structure and Evolution of the World Trade Network," Papers physics/0502066, arXiv.org, revised May 2005.
- Alan Kirman, 1997. "The economy as an evolving network," Journal of Evolutionary Economics, Springer, vol. 7(4), pages 339-353.
- M. Serrano & Marián Boguñá & Alessandro Vespignani, 2007. "Patterns of dominant flows in the world trade web," Journal of Economic Interaction and Coordination, Springer, vol. 2(2), pages 111-124, December.
- Hagedoorn, John, 2002. "Inter-firm R&D partnerships: an overview of major trends and patterns since 1960," Research Policy, Elsevier, vol. 31(4), pages 477-492, May.
- Brock,W.A. & Durlauf,S.N., 2000.
"Discrete choice with social interactions,"
7, Wisconsin Madison - Social Systems.
- Brock, W A, 1999. "Scaling in Economics: A Reader's Guide," Industrial and Corporate Change, Oxford University Press, vol. 8(3), pages 409-46, September.
- Iori, Giulia & De Masi, Giulia & Precup, Ovidiu Vasile & Gabbi, Giampaolo & Caldarelli, Guido, 2008.
"A network analysis of the Italian overnight money market,"
Journal of Economic Dynamics and Control,
Elsevier, vol. 32(1), pages 259-278, January.
- Iori, G. & Masi, G. D. & Precup, O. V. & Gabbi, G. & Caldarelli, G., 2005. "A network analysis of the Italian oversight money market," Working Papers 05/05, Department of Economics, City University London.
- Battiston, Stefano & Delli Gatti, Domenico & Gallegati, Mauro & Greenwald, Bruce & Stiglitz, Joseph E., 2007. "Credit chains and bankruptcy propagation in production networks," Journal of Economic Dynamics and Control, Elsevier, vol. 31(6), pages 2061-2084, June.
- Gallegati, Mauro & Keen, Steve & Lux, Thomas & Ormerod, Paul, 2006. "Worrying trends in econophysics," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 370(1), pages 1-6.
- Iori, Giulia & Jafarey, Saqib, 2001.
"Criticality in a model of banking crises,"
Physica A: Statistical Mechanics and its Applications,
Elsevier, vol. 299(1), pages 205-212.
- Giorgio Fagiolo & Javier Reyes & Stefano Schiavo, 2007.
"On the Topological Properties of the World Trade Web: A Weighted Network Analysis,"
- Fagiolo, Giorgio & Reyes, Javier & Schiavo, Stefano, 2008. "On the topological properties of the world trade web: A weighted network analysis," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 387(15), pages 3868-3873.
- Garlaschelli, Diego & Loffredo, Maria I., 2005. "Structure and evolution of the world trade network," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 355(1), pages 138-144.
- Michael Boss & Helmut Elsinger & Martin Summer & Stefan Thurner, 2004. "Network topology of the interbank market," Quantitative Finance, Taylor & Francis Journals, vol. 4(6), pages 677-684.
- Jan Lorenz & Stefano Battiston & Frank Schweitzer, .
"Systemic Risk in a Unifying Framework for Cascading Processes on Networks,"
CCSS-09-011, ETH Zurich, Chair of Systems Design.
- J. Lorenz & S. Battiston & F. Schweitzer, 2009. "Systemic risk in a unifying framework for cascading processes on networks," The European Physical Journal B - Condensed Matter and Complex Systems, Springer, vol. 71(4), pages 441-460, October.
- Jan Lorenz & Stefano Battiston & Frank Schweitzer, 2009. "Systemic Risk in a Unifying Framework for Cascading Processes on Networks," Papers 0907.5325, arXiv.org, revised Jan 2010.
- Frank Schweitzer & Giorgio Fagiolo & Didier Sornette & Fernando Vega-Redondo & Douglas R. White, .
"Economic Networks: What do we know and what do we need to know?,"
CCSS-09-010, ETH Zurich, Chair of Systems Design.
- Frank Schweitzer & Giorgio Fagiolo & Didier Sornette & Fernando Vega-Redondo & Douglas R. White, 2009. "Economic Networks: What Do We Know And What Do We Need To Know?," Advances in Complex Systems (ACS), World Scientific Publishing Co. Pte. Ltd., vol. 12(04), pages 407-422.
- J. Doyne Farmer, 1999. "Physicists Attempt to Scale the Ivory Towers of Finance," Working Papers 99-10-073, Santa Fe Institute.
- Tiziana Di Matteo & Tomaso Aste, 2007. "“No Worries": Trends in Econophysics," The European Physical Journal B - Condensed Matter and Complex Systems, Springer, vol. 55(2), pages 121-122, 01.
- Yaron Leitner, 2005. "Financial Networks: Contagion, Commitment, and Private Sector Bailouts," Journal of Finance, American Finance Association, vol. 60(6), pages 2925-2953, December.
- Kosfeld Michael, 2004. "Economic Networks in the Laboratory: A Survey," Review of Network Economics, De Gruyter, vol. 3(1), pages 1-23, March.
- J. Reichardt & D. R. White, 2007. "Role models for complex networks," The European Physical Journal B - Condensed Matter and Complex Systems, Springer, vol. 60(2), pages 217-224, November.
- Venkatesh Bala & Sanjeev Goyal, 2000. "A Noncooperative Model of Network Formation," Econometrica, Econometric Society, vol. 68(5), pages 1181-1230, September.
- J. B. Glattfelder & S. Battiston, 2009. "Backbone of complex networks of corporations: The flow of control," Papers 0902.0878, arXiv.org, revised Aug 2009.
When requesting a correction, please mention this item's handle: RePEc:stz:wpaper:ccss-09-010. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Claudio J. Tessone)
If references are entirely missing, you can add them using this form.