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

ACS - Advances in Complex Systems, Vol. 12, Nos. 4-5, pp. 407-422, 2009

CCSS Working Paper No. CCSS-09-010

19 Pages Posted: 27 Apr 2010

See all articles by Frank Schweitzer

Frank Schweitzer

ETH Zürich

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

Douglas R. White

University of California, Irvine - Department of Anthropology

Multiple version iconThere are 2 versions of this paper

Date Written: December 12, 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

Schweitzer, Frank and Fagiolo, Giorgio and Sornette, Didier and Vega-Redondo, Fernando and White, Douglas R., Economic Networks: What Do We Know and What Do We Need to Know? (December 12, 2009). CCSS Working Paper No. CCSS-09-010. Available at SSRN: https://ssrn.com/abstract=1596044

Frank Schweitzer (Contact Author)

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

Giorgio Fagiolo

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)

Douglas R. White

University of California, Irvine - Department of Anthropology ( email )

Irvine, CA 92697¿5100
United States

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