The Economics of Social Networks

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Poverty, occupational choice and social networks: essays in development economics

Poverty, occupational choice and social networks: essays in development economics

This thesis contains three independent chapters that are aimed towards contributing to our understanding of three key questions in the literature on poverty, occupational choice and social networks. All three chapters exploit the randomized roll-out of a large scale poverty alleviation program in Bangladesh to provide evidence on these questions. The first chapter aims to contribute to our understanding of the role that contracts in a rural labor market may play in insuring workers against fluctuations in their income. As such, it provides evidence on a well-established idea in the study of rural labor markets – that of labor-tying. I show that labor-tying is an important channel through which the poor in rural Bangladesh insure themselves against risks. Using a theoretical framework adapted from Bardhan (1983), I analyze the effects of an exogenous increase in the outside options of poor women (through an improvement in their self-employment opportunities) on their and their spouses’ participation in tied labor, as well as the general equilibrium effects of the treatment on the terms of the labor contracts in the village. I find that treated women and their spouses are less likely to be in tied-labor contracts. Their wages increase through two channels: (a) due to the switch from tied to casual labor contracts (b) through the general equilibrium effects in the village labor market. Furthermore, I find that the treated households form reciprocal transfer links with wealthier households in the village. These findings imply that poor households may be involved in second-best labor contracts to insure themselves against risks. When their self-employment opportunities improve, they break these ties and move to greater reliance on reciprocal transfer arrangements.
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Social capital, social norms and the New Institutional Economics

Social capital, social norms and the New Institutional Economics

Reputational considerations are among the most frequently studied sources of trust. The basic reputation story is straightforward: exchange partners that expect to do business or interact in the future are less likely to renege on commitments than partners who have no such expectations. The evidence suggests that this direct reputational constraint explains trusting behavior, as we would expect, but only partially. Glaeser et al. (2000) find that the length of time that paired participants had known each other prior to the experiment had a modest impact on the willingness of senders to transfer money to recipients and a somewhat greater effect on the willingness of recipients to return money (see their Table 4). Other factors, more closely linked to the social capital literature than to the reputational literature, had a much stronger effect: the hours that senders spent studying alone – like bowling alone, a possible indicator of thin social networks which may be associated with weaker norms -- had a strongly negative impact on the amounts they transferred (Glaeser et al., Table 7). 18 In situations where one did not anticipate
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Economics of big data: review of best papers for January 2018

Economics of big data: review of best papers for January 2018

Hundreds of new papers on big data are released every month and at times it is difficult to distinguish between them in terms of quality and practical use. The purpose of this monthly review is to highlight the findings in the most relevant papers in Economics of big data to help readers identify the most important new developments in the field. The review for January 2018 includes a study of social networks in truancy, a paper on consumer privacy and data collection and three NBER papers on applications of Artificial Intelligence in Economics.
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Essays On The Economics Of Networks

Essays On The Economics Of Networks

In the first chapter, “A Structural Analysis of Job Referrals and Social Networks: The Case of the Corporate Executives Market”, I develop and structurally implement a labor market search model in which workers, in addition to directly receiving job offers, also receive referrals from their social contacts. In the model, referrals are generated endogenously: an external referral occurs when a friend rejects an offer he/she receives, and an internal referral occurs when a friend leaves his/her current job. I estimate the model by Generalized Method of Moments using data on the labor market history and the social connections of executives in S&P 500 firms. Using the estimated model, I find that referrals play a substantial role in the executive labor market. More than one quarter of the job transitions and raises are driven byvreferrals. Shutting down referrals reduces executives’ welfare by an equivalence of a two to seven percentage points reduction in income. I also evaluate the impacts of the social networks’ structure by comparing the outcomes under the observed networks and alternative randomly formed networks. I find that the welfare distribution is more unequal under the random networks. I further investigate the mechanisms for these effects through the lens of two network statistics: friends’ popularity and local community clustering. In the second chapter, “Inferring the Ideological Affiliations of Political Committees via Financial Contributions Networks” (co-authored with Hanming Fang), we address the missing data problem for about two thirds of the political committees that do not self-identify their party affiliations in their registration with the Federal Election Commission. In this chapter, we propose and implement a novel Bayesian approach to infer the ideological affiliations of political committees based on the network of financial contributions among them. In Monte Carlo simulations, we demonstrate that our estimation algorithm achieves very high accuracy in recovering these committees’ latent ideological affiliations when the pairwise difference in ideology groups’ connection patterns satisfy a condition known as the Chernoff- Hellinger divergence criterion. We illustrate our approach using the campaign finance records from the 2003-2004 election cycle. Using the posterior mode to categorize the ideological affiliations of the political committees, our estimates match the self-reported ideology for 94.63% of those committees who self-reported to be Democratic and 89.49% of those committees who self-reported to be Republican.
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The economics of social stratification in premodern societies

The economics of social stratification in premodern societies

According to Andreski (1968, 31–32), a class of warriors can emerge in two ways: either by gradual di¤erentiation of warriors from the rest of the population, or by conquest and subjugation of another group. Gradual di¤erentiation occurs when a group manages to monopolise arms-bearing in order to secure a privileged position in society or if the professionalisation of warriors is necessary for society to augment its military power. Andreski maintains that conquest was the most common mechanism of social strati…cation and provides a long list of historical cases to back up his claim: the subjugation of one city by another in Sumer (p. 42), the Dorian invasions in Greece (p. 43–44), and the Norse conquest of Russian Slavic tribes (p. 62), to mention just a few. Perhaps the chemically purest examples of strati…cation by conquest can be found in East Africa and Sudan. In those regions, ample kingdoms were founded through the conquest of agriculturalists by pastoralists (p. 32). In Ankole, for instance, the pastoralist Hima conquered the agricultural Iru sometime before the British colonisation. The Hima forced the Iru to pay tribute and allowed them no political rights. Only Iru men were allowed to bear arms and participate in war.
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Kautilya's Economics and his Social System

Kautilya's Economics and his Social System

Rangrajan, Penguin Publisher 1st Edition, 1992.. The Wealth of Nation, Adam, London J.M.[r]

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Preference of Social Choice in Mathematical Economics

Preference of Social Choice in Mathematical Economics

Mathematical Economics is closely related with Social Choice Theory. In this paper, an attempt has been made to show this relation by introducing utility functions, preference relations and Arrow’s impossibility theorem with easier mathematical calculations. The paper begins with some definitions which are easy but will be helpful to those who are new in this field. The preference relations will give idea in individual’s and social choices according to their budget. Economists want to create maximum utility in society and the paper indicates how the maximum utility can be obtained. Arrow’s theorem indicates that the aggregate of individuals’ preferences will not satisfy transitivity, indifference to irrelevant alternatives and non-dictatorship simultaneously so that one of the individuals becomes a dictator. The Combinatorial and Geometrical approach facilitate understanding of Arrow’s theorem in an elegant manner.
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The Social Provisioning Process and Heterodox Economics

The Social Provisioning Process and Heterodox Economics

The social provisioning process is one of them that provides a social and processual-historical account as to how the economy is organized and reproduced. The social provisioning process is thus situated in the long intellectual tradition, which views the economy as an embedded part of society (as discussed earlier), and which concerns the material basis of the society as an outcome of the open-ended interaction or struggle between human beings and nature, between social classes, and between agency and social structures (as discussed later). Provisioning is a vast range of activities, including both market and non-market, paid and unpaid activities, undertaken by human agents and going-concern organizations for the sake of their survival and reproduction. Consider the provisioning of goods under capitalism. It is a course of action encompassing the use of resources, production, sales, and consumption. Its starting point is the business enterprise’s decision to produce consumption (or surplus) goods given production technology that determines the use of particular resources produced by other sectors of the economy (recall the earlier discussion of circular-surplus production economy). Household consumption is thus dependent upon the production decision to the extent that household wage incomes are earned as a reward for selling labor power to the business enterprise (or the capitalist class in general). That is, the business enterprise creates the demand for labor by creating jobs with specific labor skills. Moreover, the welfare of the working class is controlled by the business enterprise via controlling the wage rates and producing wage goods that are necessary for the working class (Veblen 1919, 160-163). The provisioning of goods, therefore, is closely linked to the provisioning of technology, employ- ment, and welfare, that are further rooted in the division of classes legitimizing the uneven distribution of socio-economic power qua agency and of distribution
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Social surplus approach and heterodox economics

Social surplus approach and heterodox economics

structural core of the social surplus approach consists of technology, class, capitalist state, and a surplus producing economy qua social activities and the agency core consists of decisions by the business enterprise and the state, are there diverse ways of engaging with it? The Sraffians in general argue that their approach, which is closely aligned with the classical approach, is the only valid approach. In this paper we argue that that there is also an alternative approach to the social surplus approach, one that draws up Sraffian as well as other heterodox traditions. This more integrative approach is denoted as the heterodox social surplus approach. 1 We also argue that the two approaches, while similar, generate different theoretical narratives of the
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On Economics, Ethics, and Corporate Social Responsibility

On Economics, Ethics, and Corporate Social Responsibility

The approach proposed in this paper implies a change of perspective: from a conception of Economics under- stood as a technology-of-choice to Economics understood as a theory of production-of-action. Section 2 includes a brief summary of certain relevant common topics of CSR literature that exemplify the problematic relationship be- tween social responsibility and Economics. In Section 3, a conceptual view of the role and consequences of the agents’ pursuit of goals on the development of new ca- pabilities and new behavioral patterns, etc. is presented [3-6]. Accordingly, we introduce the concept of agents’ action plans. In particular, it will be shown that the ethi- cal dynamics of agents are capable of generating “ethical novelties”, which consequently alter the agents’ space of goals. Insofar as this is heavily influenced by CSR, the consequence is (and this is the main thesis of the paper) that CSR is neither strange to Economics nor a concept juxtaposed with the analysis of autonomous economic processes. In Section 4, we show how a more compre- hensive and systematic analysis of Economics and CSR can be developed: social responsibility is not an appendix or a mere technical expedient attached to economics, but rather an issue that refers naturally and necessarily to questions that may be answered from within an integra- tive approach, i.e. within a conception of Economics as a theory of production of action. The paper finishes with some concluding remarks.
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Using Social Networks for Pedagogical Practice in French Higher Education: Educator and Learner Perspectives

Using Social Networks for Pedagogical Practice in French Higher Education: Educator and Learner Perspectives

expected more from a social network being used as a tool for learning. So what was to be done? Once the authors realised that the novelty value had perhaps worn off, it was too late to initiate a full overhaul of the course and redesign the structure, so it was maintained as such during case study 4. However, by the end of the session and while conducting critical research analysis, the authors decided that social learning objects that “facilitate conversation, and thus social interaction” (Weller, 2008) needed to be defined in this context and put into action through a new phase of eLearning Exchange Networks for the following case study. This article sets out some reasons why and includes suggestions of how the authors/tutors moved towards second generation eLearning Exchange Networks (eLEN2) through evolving both the pedagogical approach and the implementation, which in turn have had a major impact on both tutor/educator and student/learner roles and perspectives.
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Energy information sharing in social networks:  The roles of objective knowledge and perceived understanding

Energy information sharing in social networks: The roles of objective knowledge and perceived understanding

Abstract: As sustainability educators and communication professionals consider various strategies to engage audiences with regard to household energy use, one option now seemingly available is to leverage social networks by encouraging people to share information with others they know. At the same time, we currently do not know enough about the potential spread of energy-related information in this fashion. Whether, when, or how people share energy-related information with peers or family members are crucial questions, for example. Using national survey data from U.S. residents (n=816), we predicted energy information sharing as a function of objective energy knowledge (measured using a factual energy knowledge index), perceived energy understanding, and demographic variables. Our analyses underscored the importance of assessing not only factual energy knowledge but also perceived understanding, as both are equally predictive of energy information sharing frequency (β=.11, p<.05, for objective knowledge and β=.11, p<.01 for perceived understanding). Number of children also predicted energy information sharing, β=.11, p<.01. We discuss the implications of these results for informal energy education efforts in the 21 st century.
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Economics of social, gender, and income inequalities

Economics of social, gender, and income inequalities

This paper relates to the literature on experimental economics, that tests the link between affirmative action policies and effort and performance. Examples in- clude Schotter and Weigelt (1992), where asymmetry was exogenously imposed by researchers assigning cost functions to subjects, and Bracha et al. (2015), who fo- cused on gender-based asymmetry in quantitative problem solving. Calsamiglia et al. (2013) conducted a field experiment in which 10 to 13 year old children competed Sudoku puzzles in a pair-wise (one-to-one) tournament, with asymmetry stemming from previous exposure to Sudoku. Hickman (2013) created disadvantaged groups by making school children from different grades compete with each other, with school children from lower grades being viewed as the disadvantaged group. Our paper makes a step forward by examining the incentive effects of affirmative action poli- cies by randomizing preferential treatments over legally recognized, discriminated against minorities. In the real world, disadvantaged groups can experience severe resource constraints when compared to non-minorities. Additionally, the minority groups may also have nonminority friends or colleagues. Pro-minority policies may antagonize nonminority colleagues. By involving minorities in the experiment, the current study complements the above literature by capturing the actual constraints that could impact the outcome of the minorities. This can also help explain why the results of the current paper differ from the experiments noted above, which found positive effects on the performance of disadvantaged groups
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Signal processing for distributed nodes in smart networks

Signal processing for distributed nodes in smart networks

This thesis addresses the challenges of modeling the energy usage behavior of dis- tributed nodes through studying the propriety of energy users in smart networks, 1) by capturing the interactions between the energy users and energy provider in smart grids using non-cooperative Stackelberg and generalized Nash games, and showing that the so- cially optimal energy management for users can be achieved at the solution of the games, and 2) by studying the power control of sensors in wireless sensor networks, using a non- cooperative Nash game and distributed transmit beamforming that demonstrates signif- icant transmit energy savings for the sensors. To foster energy efficient transmission, the thesis also studies a distributed transmit beamforming technique that does not require any channel state information for long distance signal transmission in sensor networks.
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A Theoretical Learning-Based Prefetching in Mobile Online Social Networks

A Theoretical Learning-Based Prefetching in Mobile Online Social Networks

As mentioned above, we collect data traces from the users using Twidere app. This is because, although Twitter’s contents are publicly available, information about when, how, and where they access these social streams are not available in particular in the mobile environment. Therefore, we collected a large set of usage data from Twidere users1 who agreed to provide their information to us anonymously. As the aim is to enable intelligent prefetching by identifying the tweets that the user is most interested in, a set of tweet attributes are collected as well. To this end, the Twitter Wrapper tracks the user interaction information (e.g., retweet, favourite, or mention) of the individual tweets. The source of a tweet is also recorded by identifying whether the tweet is obtained from a direct friend or propagated through friends of others’ friends. Furthermore, with the consent from
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Efficient Private Matching and Privacy-Preserving in Mobile Cloud

Efficient Private Matching and Privacy-Preserving in Mobile Cloud

 The existing mobile social network systems pay little heed to the privacy concerns associated with friend matching and recommendation based on users’ personal information. For example, in Facebook, it provides the feature of People You May Know, which recommends the friends based on the education information, the contact lists obtained from users’ smart phone, and other users’ personal information.

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Privacy and Groups Maintaining in Social Networks

Privacy and Groups Maintaining in Social Networks

Social Networking involves the use of the internet to connect users with their friends, family and acquaintances. Next we are going to explain how the actors can be converted into the nodes in [5],[6].The conversations are converted to the connections and actors act as nodes .

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Economics of Spectrum Allocation in Cognitive Radio Networks

Economics of Spectrum Allocation in Cognitive Radio Networks

Cognitive radio networks (CRNs) are emerging as a promising technology for the efficient use of radio spectrum. In these networks, there are two levels of networks on each channel, primary and secondary, and secondary users can use the channel whenever the primary is not using it. Spectrum allocation in CRNs poses several challenges not present in traditional wireless networks; the goal of this dissertation is to address some of the economic aspects thereof. Broadly, spectrum allocation in CRNs can be done in two ways- (i) one-step allocation in which the spectrum regulator simultaneously allocates spectrum to primary and secondary users in a single allocation and (ii) two-step allocation in which the spectrum regulator first allocates spectrum to primary users, who in turn, allocate unused portions on their channels to secondary users. For the two-step allocation scheme, we consider a spectrum market in which trading of bandwidth among primaries and secondaries is done. When the number of primaries and secondaries is small, we analyze price competition among the primaries using the framework of game theory and seek to find Nash equilibria. We analyze the cases both when all the players are located in a single small location and when they are spread over a large region and spatial reuse of spectrum is done. When the number of primaries and secondaries is large, we consider different types of spectrum contracts derived from raw spectrum and analyze the problem of optimal dynamic selection of a portfolio of long-term and short-term contracts to sell or buy from the points of view of primary and secondary users. For the one-step allocation scheme, we design an auction framework using which the spectrum regulator can simultaneously allocate spectrum to primary and secondary users with the objective of either maximizing its own revenue or maximizing the social welfare. We design different bidding languages, which the users can use to compactly express their bids in the auction, and polynomial-time algorithms for choosing the allocation of channels to the bidders.
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A New Protocal for Fine-Grained Friend Matching In Social Networking

A New Protocal for Fine-Grained Friend Matching In Social Networking

while other networks, such as Instagram, were initially mobile -only and later extended into cross-platform availability as well with the help of web apps. An increasing number of social networks are therefore accessible through multiple platforms in order to offer users access to different features according to their needs, time and preferred device. Along with the popularity of the smart phone and ubiquitous wireless access, mobile clouds are becoming an inseparable part of our life. People use different clouds provided by different applications to store their private data such as contacts, mail address lists or bank accounts while mobile applications use these data to provide a wide range of service such as friend recommendation. Profile (e.g., contact list, interest, mobility) matching is more than important for fostering the wide use of mobile social networks because recommending the individuals of the common contacts list/similar interests is always the first step for any social networking. The social networks such as Facebook, Line or WeChat recommend the friends for the users based on contact list or mobility traces. The existing mobile social network systems pay little attention to the privacy concerns associated with friend matching and recommendation based on users’ personal information. For example, in Facebook, it provides the feature of People You May Know, which recommend
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Social Networks, Cyberspace and Formation of Virtual Identity of the Users

Social Networks, Cyberspace and Formation of Virtual Identity of the Users

“International Law and International Relations” defined social networks as follows: "social networks are spaces in the virtual world that are created for the communication between different people, with different levels of access, like real space and the development of mass and interpersonal communication, formation of virtual communities, informing, exchange of information and opinions are among the best known functions of this space.” The term of "social networks" is a subset of social media. Some features of social networks include: sharing, organizing and mobilizing, friendship, trust, circles of audiences, citing and generalization, being multimedia, chat, cruel criticism, following and being followed, prestige, open publication, the collective wisdom, universality, social mobility and ingenuity (Ziaee Parvar, 25,2009). The presence of people in social networks increases the possibility of participation and social interaction among people. So, whatever the bonds between the people and members in the network are greater and denser, the association, interaction, closeness of ideas, common and consistent movement will be more likely. In a social network, people pursue both political goals and personal goals, and interact with other individuals and organizations (ibid, 87). In fact social network are formed on the basis of an identity in a society and identities are derived from models, myths, ideologies, beliefs, ideals, values, and so on. By categorizing the principles of the formation of identity, groups and various social networks are inseparable. Damage to the principles of the formation of the identity, such as patterns, myths and… causes damage to social networks and as a result, relevant network becomes in the floating position and can harm not only to
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