Individual and global adaptation in networks

The structure of complex biological and socio-economic networks affects the selective pressures or behavioural incentives of components in that network, and reflexively, the evolution/behaviour of individuals in those networks changes the structure of such networks over time. Such ‘adaptive networks’ underlie how gene-regulation networks evolve, how ecological networks self-organise, and how networks of strategic agents co-create social organisations. Although such domains are different in the details, they can each be characterised as networks of self-interested agents where agents alter network connections in the direction that increases their individual utility. Recent work shows that such dynamics are equivalent to associative learning, well-understood in the context of neural networks. Associative learning in neural substrates is the result of mandated learning rules (e.g. Hebbian learning), but in networks of autonomous agents ‘associative induction’ occurs as a result of local individual incentives to alter connections. Using results from a number of recent studies, here we review the theoretical principles that can be transferred between disciplines as a result of this isomorphism, and the implications for the organisation of genetic, social and ecological networks

Social Simulation That 'Peers into Peer Review'

This article suggests to view peer review as a social interaction problem and shows reasons for social simulators to investigate it. Although essential for science, peer review is largely understudied and current attempts to reform it are not supported by scientific evidence. We suggest that there is room for social simulation to fill this gap by spotlighting social mechanisms behind peer review at the microscope and understanding their implications for the science system. In particular, social simulation could help to understand why voluntary peer review works at all, explore the relevance of social sanctions and reputational motives to increase the commitment of agents involved, cast light on the economic cost of this institution for the science system and understand the influence of signals and social networks in determining biases in the reviewing process. Finally, social simulation could help to test policy scenarios to maximise the efficacy and efficiency of various peer review schemes under specific circumstances and for everyone involved.Peer Review, Social Simulation, Social Norms, Selection Biases, Science Policy

Globalization trends and regional development - dynamics of FDI and human capital flows

This is a post-peer-review, pre-copyedit version of an article published in [European Journal of Development Research]. The definitive publisher-authenticated version [European Journal of Development Research 26, 160-161 (January 2014)] is available online at: http://www.palgravejournals.com/ejdr/journal/v26/n1/full/ejdr201354a.htmlApparently rendered irrelevant by globalization, regions have been rediscovered as a force in economic and social development by both scholars and policymakers. Localized inter-personal ties and networks are seen as important resources (Woolcock and Narayan, 2000), and the local supply of entrepreneurs has emerged as a key determinant of future economic growth (Chatterji et al, 2013)

Patterns of link reciprocity in directed networks

We address the problem of link reciprocity, the non-random presence of two mutual links between pairs of vertices. We propose a new measure of reciprocity that allows the ordering of networks according to their actual degree of correlation between mutual links. We find that real networks are always either correlated or anticorrelated, and that networks of the same type (economic, social, cellular, financial, ecological, etc.) display similar values of the reciprocity. The observed patterns are not reproduced by current models. This leads us to introduce a more general framework where mutual links occur with a conditional connection probability. In some of the studied networks we discuss the form of the conditional connection probability and the size dependence of the reciprocity.Comment: Final version accepted for publication on Physical Review Letter

Social Networks and Wages: It's All About Connections!

Empirical evidence suggests that networks of personal relations are very important in the micro dynamics of labor markets: irrespectively of the country and the occupation considered a high share of jobs are filled by social referrals. In this paper we add theoretical speculation and empirical evidence to this stylized fact shedding light on an apparent puzzle: the effect of informal contacts on wages. We, first, review the literature arguing that economic perspectives on the effect of social networks use on wages can benefit from considering differences in the nature of social ties. Second, we propose a formal model which considers two different informal contacts which we call "family" and "professional". The model predicts that while the use of the former type is likely to have a negative impact on wages, the opposite is true for the latter. Third, we use a relatively unexploited Italian data set to show how different ties have different properties and are likely to be used for different purposes. Finally, we concentrate on the relation between informal contacts and wages, obtaining results which are consistent with our theoretical insights.Labor Markets, Job Search, Social Networks

Building the legitimacy of business networks through certification: The development of differentiated relationships.

In this paper we analyze how legitimacy allows us to develop differentiated relationships in business networks. Our central argument is that the building of legitimacy in business networks through certification needs the development of what we call differentiated relationships, based on the use of governance mechanisms. Mainly theoretical, our communication develops the argument through a critical review of literature. We use the organizational legitimacy (Elsbach, 1994) and institutional theories (DiMaggio and Powell, 1983) approach to explain how business networks can adopt and manage legitimacy. We exploit also the economic theory (Brousseau and Raynaud, 2006) and social theory of agency (Westphal and Zajac, 1998) to explain the adoption of specific governance mechanisms (Provan and Kenis, 2007) that legitimate business networks. We apply our question to a specific third party certification market: the fair trade market. We show that to build legitimacy in business networks it is necessary to use and manage governance mechanisms in the best way. These actions lead to establish differentiated relationships in business networks between all of the partners involving third party certifiers.relationships; Legitimacy; networks; certification;

Social networks in cultural industries

Although cultural industries can benefit from social networks in many ways, few Spanish studies examine the extent to which firms within this economic sector actually use such networks. This study's objective is to investigate the role of online social networks in Spanish cultural firms. The study begins with a literature review on cultural industries and social networks. Then the study proceeds to a Delphi analysis that draws upon experts' opinions. Results reveal a predominance of utilitarian uses over expressive ones, as well as an overriding use of proactive motivations rather than reactive ones within the context of cultural firms' use of social networks. The study confirms the profitability of these networks and the transfer of influence or power from providers to the consumers of cultural goods and services

Infrastructure networks and the competitiveness of the economy

This paper aims to examine how technical infrastructure networks may contribute to improving the competitiveness of the Hungarian economy. Consequently, our main question will be to establish how certain networks or sectors can promote competitiveness of the entire economy rather than how they could be more competitive in their own field. In the macroeconomic or regional sense competitiveness is interpreted as the entirety of safeguards and preconditions that provide a long term basis for success in a competitive market environment. The review of the economic, social, institutional and facility preconditions of competitiveness has highlighted that practically every component must be backed by a good system of relations: both strong, balanced internal relations promoting co-operation and external relations to assure outward linkages. Despite the above correlation, it would be a fallacy to assume that infrastructure networks as linking elements in general are factors per se improving competitiveness. In accordance with the level of development of the economy, the key forms of activity and the realistically attainable objectives, different linkages and service needs become key for the development of the economy in different stages

Mind the gap! Social capital, East and West

© 2008 Association for Comparative Economic Studies. Published by Elsevier Inc. This is the post-print version of the final paper published in Journal of Comparative Economics. The published article is available from the link below. Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. Changes may have been made to this work since it was submitted for publication.Social capital in Central and Eastern Europe lags behind that in Western European countries. We analyze the determinants of individual stock of social capital – measured by civic participation and access to social networks – and find that this gap persists when we account for individual characteristics and endowments of respondents. However, the gap disappears completely after we include aggregate measures of economic development and quality of institutions. Informal institutions such as the prevalence of corruption in post-communist countries appear particularly important. With the enlargement of the European Union, the gap in social capital should gradually disappear as the new member states catch up (economically and institutionally) with the old ones