The small-world of economy: a speculative proposal

G. Corso, L.S. Lucena and Z.D. Thomé

Physica A: Statistical Mechanics and its Applications, 2003, vol. 324, issue 1, 430-436

Abstract: Using the small-world approach we suggest a network model for the economy. Our basic assumption is that the economic agents prefer to make business with the big business. This assumption makes the preferential attachment the main mechanism for the evolution of the economic network. We hypothesize that the connectivity of the economic network should reflect the wealth distribution of the society which is considered to be an exponential truncated power law. The objective of this paper is to model qualitatively the wealth distribution of a society using concepts based on evolving network. Several alternatives of evolving networks are discussed in an economic context.

Keywords: Econophysics; Wealth distributions; Complex networks; Economy dynamics (search for similar items in EconPapers)
Date: 2003
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Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:phsmap:v:324:y:2003:i:1:p:430-436

DOI: 10.1016/S0378-4371(02)01883-6

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