Power in Networks: A PGI Analysis of Krackhardt’s Kite Network

Abstract

This paper applies for the first time power index analysis to the famous Krackhardt’s kite social network by imposing a weighted voting game on the given network structure. It compares the results of this analysis, derived by applying the Public Good Index and the Public Value, with the outcome of employing the centrality concepts - degree centrality, closeness centrality, and betweenness centrality - that we find in Krackstadt (1990), and eigenvector centrality. The conclusion is that traditional centrality measures are rather a first approximation for evaluating the power in a network as they considerably abstract from decision making and thereby of possible coalitions and actions. (Power index analysis takes care of decision making, however, in the rather abstract (a priori) form of the potential of forming coalitions.)

Keywords: network, centrality, Public Good Index, Public Value, power indices, weighted voting game

JEL Classification: C70, C72, D72, D85, L14, Z13