Social and Economic Networks

Preface xi     PART I: BACKGROUND AND FUNDAMENTALS OF NETWORK ANALYSIS     Chapter 1 Introduction 3  1.1 Why Model Networks? 3  1.2 A Set of Examples 4  1.3 Exercises 17      Chapter 2: Representing and Measuring Networks 20  2.1 Representing Networks 20  2.2 Some Summary Statistics and Characteristics of Networks 30  2.3 Appendix: Basic Graph Theory 43  2.4 Appendix: Eigenvectors and Eigenvalues 49  2.5 Exercises 51      Chapter 3: Empirical Background on Social and Economic Networks 54  3.1 The Prevalence of Social Networks 55  3.2 Observations on the Structure of Networks 56      PART II: MODELS OF NETWORK FORMATION     Chapter 4: Random-Graph Models of Networks 77  4.1 Static Random-Graph Models of Random Networks 78  4.2 Properties of Random Networks 86  4.3 An Application: Contagion and Diffusion 105  4.4 Distribution of Component Sizes 107  4.5 Appendix: Useful Facts, Tools, and Theorems 110  4.6 Exercises 121      Chapter 5: Growing Random Networks 124  5.1 Uniform Randomness: An Exponential Degree Distribution 125  5.2 Preferential Attachment 130  5.3 Hybrid Models 134  5.4 Small Worlds, Clustering, and Assortativity 141  5.5 Exercises 150      Chapter 6: Strategic Network Formation 153  6.1 Pairwise Stability 154  6.2 Efficient Networks 157  6.3 Distance-Based Utility 159  6.4 A Coauthor Model and Negative Externalities 166  6.5 Small Worlds in an Islands-Connections Model 170  6.6 A General Tension between Stability and Efficiency 173  6.7 Exercises 179      PART III: IMPLICATIONS OF NETWORK STRUCTURE     Chapter 7: Diffusion through Networks 185  7.1 Background: The Bass Model 187  7.2 Spread of Information and Disease 189  7.3 Search and Navigation on Networks 209  7.4 Exercises 221      Chapter 8: Learning and Networks 223  8.1 Early Theory and Opinion Leaders 224  8.2 Bayesian and Observational Learning 225  8.3 Imitation and Social Influence Models: The DeGroot Model 228  8.4 Exercises 253      Chapter 9: Decisions, Behavior, and Games on Networks 257  9.1 Decisions and Social Interaction 258  9.2 Graphical Games 269  9.3 Semi-Anonymous Graphical Games 273  9.4 Randomly Chosen Neighbors and Network Games 279  9.5 Richer Action Spaces 286  9.6 Dynamic Behavior and Contagion 293  9.7 Multiple Equilibria and Diffusion in Network Games 297  9.8 Computing Equilibria 304  9.9 Appendix: A Primer on Noncooperative Game Theory 308  9.10 Exercises 319      Chapter 10: Networked Markets 327  10.1 Social Embeddedness of Markets and Exchange 328  10.2 Networks in Labor Markets 334  10.3 Models of Networked Markets 353  10.4 Concluding Remarks 365  10.5 Exercises 366      PART IV: METHODS, TOOLS, AND EMPIRICAL ANALYSES     Chapter 11: Game-Theoretic Modeling of Network Formation 371  11.1 Defining Stability and Equilibrium 372  11.2 The Existence of Stable Networks 377  11.3 Directed Networks 383  11.4 Stochastic Strategic Models of Network Formation 388  11.5 Farsighted Network Formation 395  11.6 Transfers and Network Formation 399  11.7 Weighted Network Formation 402  11.8 Agent-Based Modeling 406  11.9 Exercises 407      Chapter 12: Allocation Rules, Networks, and Cooperative Games 411  12.1 Cooperative Game Theory 412  12.2 Communication Games 416  12.3 Networks and Allocation Rules 419  12.4 Allocation Rules When Networks Are Formed 425  12.5 Concluding Remarks 430  12.6 Exercises 430      Chapter 13: Observing and Measuring Social Interaction 434  13.1 Specification and Identification 435  13.2 Community Structures, Block Models, and Latent Spaces 443  13.3 Exercises 457      Afterword 459  Bibliography 461  Index 491