Economic Networks: What Do We Know and What Do We Need to Know?

Advances in Complex Systems

Posted: 26 Apr 2010 Last revised: 29 Apr 2010

See all articles by Giorgio Fagiolo

Giorgio Fagiolo

Scuola Superiore Sant'Anna di Pisa - Laboratory of Economics and Management (LEM)

Didier Sornette

ETH Zürich - Department of Management, Technology, and Economics (D-MTEC); Swiss Finance Institute

Fernando Vega-Redondo

Universidad de Alicante - Department of Economic Analysis

Frank Schweitzer

ETH Zürich

Multiple version iconThere are 2 versions of this paper

Date Written: August 1, 2009

Abstract

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.

Keywords: Economic networks

Suggested Citation

Fagiolo, Giorgio and Sornette, Didier and Vega-Redondo, Fernando and Schweitzer, Frank, Economic Networks: What Do We Know and What Do We Need to Know? (August 1, 2009). Advances in Complex Systems. Available at SSRN: https://ssrn.com/abstract=1504434

Giorgio Fagiolo (Contact Author)

Scuola Superiore Sant'Anna di Pisa - Laboratory of Economics and Management (LEM) ( email )

Piazza Martiri della Liberta, 33
Pisa, I-56127
Italy
+39-050-883341 (Phone)
+39-050-883344 (Fax)

Didier Sornette

ETH Zürich - Department of Management, Technology, and Economics (D-MTEC) ( email )

Scheuchzerstrasse 7
Zurich, ZURICH CH-8092
Switzerland
41446328917 (Phone)
41446321914 (Fax)

HOME PAGE: http://www.er.ethz.ch/

Swiss Finance Institute

c/o University of Geneva
40, Bd du Pont-d'Arve
CH-1211 Geneva 4
Switzerland

Fernando Vega-Redondo

Universidad de Alicante - Department of Economic Analysis ( email )

Apdo. Correos, 99
03080 Alicante
Spain
+34 96 590 3616 (Phone)
+34 96 590 3898 (Fax)

Frank Schweitzer

ETH Zürich ( email )

Weinbergstrasse 56/58
WEV Room G 211
Zurich, CH-8032
Switzerland
+41 44 632 83 50 (Phone)

HOME PAGE: http://www.sg.ethz.ch

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