Networks are essential in shaping behavior in many environments. For example, economic production and supply chains are organized as networks; new technologies diffuse in the economy through research and development collaboration networks. Social networks pervade our social and economic lives. They are central in transmitting information about job opportunities and are critical to the trade of many goods and services. The presence of networks makes it essential to understand which network structures can emerge and how networks impact behavior.
Social scientists have used social networks since early in the 20th century. On the other hand, economic networks are a relatively newer research area that emerged in the late 20th century. This thriving field has applications in finance, marketing, macroeconomics, etc., and is a crucial tool for understanding the workings of modern economies. The rise of big data and advanced computational methods has enabled researchers to study economic networks at an unprecedented scale and level of detail, uncovering new insights into the structure and behavior of economies.
The course introduces networks and applications of social and economic networks. The course aims to provide students with the theoretical foundations of network theory and help them understand behavior and outcomes in networked societies.
The course contains
- an overview of social and economic networks, as well as empirical observations about network structure;
- description of network models and models of network formation;
- models of how network structures impact behavior: diffusion, learning, games on networks, and networked markets;
- practical examples of network applications;
- methods of network visualization.