Characterizations of Network Power Measures

Rene van den Brink (), Peter Borm, Ruud Hendrickx () and Guillermo Owen ()
Additional contact information
Ruud Hendrickx: CentER, Tilburg University
Guillermo Owen: Dept. of Mathematics, Naval Postgraduate School, Monterey, Ca, USA

No 05-061/1, Tinbergen Institute Discussion Papers from Tinbergen Institute

Abstract: This discussion paper led to a publication in 'Theory and Decision', 2008, 64, 519-536. A symmetric network consists of a set of positions and a set of bilateral links between these positions. Examples of such networks are exchange networks, communication networks, disease transmission networks, control networks etc. For every symmetric network we define a cooperative transferable utility game that measures the "power" of each coalition of positions in the network. Applying the Shapley value to this game yields a network power measure, the beta-measure, which reflects the power of the individual positions in the network. Applying this power distribution method iteratively yields a limit distribution, which turns out to equal the well-known degree measure. We compare the beta-measure and degree measure by providing characterizations, which differ only in the normalization that is used.

Keywords: symmetric networks; network power; stationary power distribution; beta-measure; degree measure (search for similar items in EconPapers)
JEL-codes: C71 Z13 (search for similar items in EconPapers)
Date: 2005-06-13
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Citations: View citations in EconPapers (2)

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