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Networks have always played a special role for human beings in shaping social relations, forming public opinion, and driving economic equilibria. Nowadays, online networked platforms dominate digital markets and capitalization…
The partition of society into groups, polarization, and social networks are part of most conversations today. How do they influence price competition? We discuss Bertrand duopoly equilibria with demand subject to network effects. Contrary…
Social marketing is becoming increasingly important in contemporary business. Central to social marketing is quantifying how consumers choose between alternatives and how they influence each other. This work considers a new but simple…
Many economic activities are embedded in networks: sets of agents and the (often) rivalrous relationships connecting them to one another. Input sourcing by firms, interbank lending, scientific research, and job search are four examples,…
While there is ample evidence that social and communication networks play a key role during the spread of new ideas, products, or services, network effects are expected to have diminished influence in the stationary state, when all users…
Ever since the web began, the number of websites has been growing exponentially. These websites cover an ever-increasing range of online services that fill a variety of social and economic functions across a growing range of industries. Yet…
Viral marketing takes advantage of preexisting social networks among customers to achieve large changes in behaviour. Models of influence spread have been studied in a number of domains, including the effect of "word of mouth" in the…
An increasing number of today's social interactions occurs using online social media as communication channels. Some online social networks have become extremely popular in the last decade. They differ among themselves in the character of…
Network economics is the study of a rich class of equilibrium problems that occur in the real world, from traffic management to supply chains and two-sided online marketplaces. In this paper we explore causal inference in network economics,…
Digital networks have profoundly transformed the ways in which individuals interact, exchange information, and establish connections, leading to the emergence of phenomena such as virality, misinformation cascades, and online polarization.…
Socio-diversity, the variety of human opinions, ideas, behaviors and styles, has profound implications for social systems. While it fuels innovation, productivity, and collective intelligence, it can also complicate communication and erode…
After the Internet and the World Wide Web have become popular and widely-available, the electronically stored online interactions of individuals have fast emerged as a challenge for researchers and, perhaps even faster, as a source of…
In social network markets, the act of consumer choice in these industries is governed not just by the set of incentives described by conventional consumer demand theory, but by the choices of others in which an individual's payoff is an…
Network effects are the added value derived solely from the popularity of a product in an economic market. Using agent-based models inspired by statistical physics, we propose a minimal theory of a competitive market for (nearly)…
The observed architecture of ecological and socio-economic networks differs significantly from that of random networks. From a network science standpoint, non-random structural patterns observed in real networks call for an explanation of…
Professional networks are a key determinant of individuals' labor market outcomes. They may also play a role in either exacerbating or ameliorating inequality of opportunity across demographic groups. In a theoretical model of professional…
The rate at which nodes in a network increase their connectivity depends on their fitness to compete for links. For example, in social networks some individuals acquire more social links than others, or on the www some webpages attract…
We model a network economy with three sectors: downstream firms, upstream firms, and banks. Agents are linked by productive and credit relationships so that the behavior of one agent influences the behavior of the others through network…
An increasing fraction of today social interactions occur using online social media as communication channels. Recent worldwide events, such as social movements in Spain or revolts in the Middle East, highlight their capacity to boost…
Network-based marketing refers to a collection of marketing techniques that take advantage of links between consumers to increase sales. We concentrate on the consumer networks formed using direct interactions (e.g., communications) between…