Berlin 2008 – scientific programme

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AKSOE: Arbeitskreis Physik sozio-ökonomischer Systeme

AKSOE 8: Economic Models and Evolutionary Game Theory

AKSOE 8.1: Talk

Tuesday, February 26, 2008, 10:15–10:45, EW 203

Socioeconomic Networks with Long-Range Interactions — Rui Carvalho¹ and •Giulia Iori² — ¹Centre for Advanced Spatial Analysis, 1-19 Torrington Place, University College London, WC1E 6BT United Kingdom — ²Department of Economics, School of Social Science City University, Northampton Square, London EC1V 0HB United Kingdom

In well networked communities, information is often shared informally among an individual's direct and indirect acquaintances. Here we study a modified version of a model previously proposed by Jackson and Wolinsky to account for communicating information and allocating goods in socioeconomic networks. The model defines a utility function of node i which is a weighted sum of contributions from all nodes accessible from i. First, we show that scale-free networks are more efficient than Poisson networks for the range of average degree typically found in real world networks. We then study an evolving network mechanism where new nodes attach to existing ones preferentially by utility. We find the presence of three regimes: scale-free (rich-get-richer), fit-get-rich, and Poisson degree distribution. The fit-get-rich regime is characterized by a decrease in average path length.