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Connections: An Introduction to the Economics of Networks
Networks pervade social and economic life, and they play a prominent role in explaining a huge variety of social and economic phenomena. Standard economic theory did not give much credit to the role of networks until the early 1990s, but since then the study of the theory of networks has blossomed. At the heart of this research is the idea that the pattern of connections between individual rational agents shapes their actions and determines their rewards. The importance of connections has in turn motivated the study of the very processes by which networks are formed.
In Connections , Sanjeev Goyal puts contemporary thinking about networks and economic activity into context. He develops a general framework within which this body of research can be located. In the first part of the book he demonstrates that location in a network has significant effects on individual rewards and that, given this, it is natural that individuals will seek to form connections to move the network in their favor. This idea motivates the second part of the book, which develops a general theory of network formation founded on individual incentives. Goyal assesses the robustness of current research findings and identifies the substantive open questions. Written in a style that combines simple examples with formal models and complete mathematical proofs, Connections is a concise and self-contained treatment of the economic theory of networks, one that should become the natural source of reference for graduate students in economics and related disciplines.
In Connections , Sanjeev Goyal puts contemporary thinking about networks and economic activity into context. He develops a general framework within which this body of research can be located. In the first part of the book he demonstrates that location in a network has significant effects on individual rewards and that, given this, it is natural that individuals will seek to form connections to move the network in their favor. This idea motivates the second part of the book, which develops a general theory of network formation founded on individual incentives. Goyal assesses the robustness of current research findings and identifies the substantive open questions. Written in a style that combines simple examples with formal models and complete mathematical proofs, Connections is a concise and self-contained treatment of the economic theory of networks, one that should become the natural source of reference for graduate students in economics and related disciplines.
- GenresEconomicsMathematics
304 pages, Paperback
First published January 1, 2009
35 people want to read
About the author
Sanjeev Goyal
8 books3 followersSanjeev Goyal (born in 1963) is an Indian economist, Professor of Economics at the University of Cambridge and Fellow of Christ's College, Cambridge.
He has made pioneering contributions to our understanding of social and economic networks, with publications in leading international journals such as Econometrica, American Economic Review, Journal of Political Economy and Review of Economic Studies.
In 2007, Princeton University Press published his book Connections: an introduction to the economics of networks. A Chinese translation was published by Beijing University Press in 2010.
He has made pioneering contributions to our understanding of social and economic networks, with publications in leading international journals such as Econometrica, American Economic Review, Journal of Political Economy and Review of Economic Studies.
In 2007, Princeton University Press published his book Connections: an introduction to the economics of networks. A Chinese translation was published by Beijing University Press in 2010.
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December 29, 2024
The importance of networks in economics of organizations has been underestimated.
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