Social network structure and the trade-off between social utility and economic performance

We put forward a computational multi-agent model capturing the impact of social network structure on individuals’ social trust, willingness to cooperate, social utility and economic performance. Social network structure is modeled as four distinct social capital dimensions: degree, centrality, bridging and bonding social capital. Model setup draws from socio-economic theory and empirical findings based on our novel survey dataset. Results include aggregate-level comparative statics and individual-level correlations. We find, inter alia, that societies that either are better connected, exhibit a lower frequency of local cliques, or have a smaller share of family-based cliques, record relatively better aggregate economic performance. As long as family ties are sufficiently valuable, there is a trade-off between aggregate social utility and economic performance, and small world networks are then socially optimal. We also find that in dense networks and trustful societies, there is a trade-off between individual social utility and economic performance; otherwise both outcomes are positively correlated in the cross section.     

A puzzle concerning triads in social networks: Graph constraints and the triad census

Evidence from many sources shows that triadic tendencies are important structural features of social networks (e.g. transitivity or triadic closure) and triadic configurations are the basis for both theoretical claims and substantive outcomes (e.g. strength of weak ties, tie stability, or trust). A contrasting line of research demonstrates that triads in empirical social networks are well predicted by lower order graph features (density and dyads), accounting for around 90% of the variability in triad distributions when comparing different social networks (Faust, 2006, 2007, 2008). These two sets of results present a puzzle: how can substantial triadic tendencies occur when triads in empirical social networks are largely explained by lower order graph features? This paper provides insight into the puzzle by considering constraints that lower order graph features place on the triad census. Taking a comparative perspective, it shows that triad censuses from 159 social networks of diverse species and social relations are largely explained by their lower order graph features (the dyad census) through formal constraints that force triads to occur in narrow range of configurations. Nevertheless, within these constraints, a majority of networks exhibit significant triadic patterning by departing from expectation.     

When is brokerage negatively associated with economic benefits? Ethnic diversity,competition, and common-pool resources

There is a growing body of literature positively linking dimensions of social capital to economic benefits. Yet recent research also points to a potential “dark side” of social capital, where over-embeddedness in networks and the pressures associated with brokerage are hypothesized to constrain actors, having a negative effect on economic outcomes. This dichotomy suggests that context is important, yet the overwhelming majority of existing empirical evidence stems from socially homogenous populations in corporate and organizational settings, limiting a broader understanding of when and how context matters. We advance this discourse to a socially fragmented, ethnically diverse common-pool resource system where information is highly valuable and competition is fierce. Merging several unique datasets from Hawaii's pelagic tuna fishery, we find that network prominence, i.e., being well connected locally, has a significant, positive effect on economic productivity. In contrast, we find that brokerage, defined here as ties that bridge either structurally distinct or ethnically distinct groups, has a significant, negative effect. Taken together, our results provide empirical support to widespread claims of the value of information access in common-pool resource systems, yet suggest that in ethnically diverse, competitive environments, brokers may be penalized for sharing information across social divides. Our results thus contribute to an emerging theory on the fragile nature of brokerage that recognizes its potential perils and the importance of context.     

Triadic configurations in limited choice sociometric networks: Empirical and theoretical results

Previous research demonstrated that information contained in triad censuses from heterogeneous collections of social networks occupies a high dimensional space. Regions of this space, and locations of triad censuses within it, are largely defined by lower order network properties: network density and dyad distributions [Faust, K., 2006. Comparing social networks: size, density, and local structure. Metodološki Zvezki (Advances in Methodology and Statistics) 3 (2), 185–216; Faust, K., 2007. Very local structure in social networks. Sociological Methodology 37, 209–256]. The current paper extends comparative work on triad censuses by addressing three related issues. First, it determines and interprets the space occupied by triad censuses for 128 friendship networks gathered using a limited choice sociometric protocol. Second, it constructs a theoretical space for triad censuses expected given lower order graph properties and examines the dimensionality and shape of this space. Third, it brings together these lines of investigation to determine where the empirical triad censuses reside within the theoretical space. Results show that the empirical triad censuses are almost perfectly represented in one dimension (explaining 99% of the data) and that network density explains over 96% of the variance in locations on this dimension. In contrast, the theoretical space for triad censuses is at least four-dimensional, with distinctive regions defined by network density and dyad distributions. Within this theoretical space, the empirical triad censuses occupy a restricted region that closely tracks triad censuses expected given network density. Results differ markedly from prior findings that the space occupied by triad censuses from heterogeneous social networks is of high dimensionality. Results also reinforce observations about constraints that network size and density place on graph level indices.     

Social capital and economic integration of migrants in urban China

Based on data from a 2005 survey conducted in Shanghai, China, this research examines the role of social capital in income inequality between rural migrants and urbanites. We find strong income return on social capital, in particular on social capital from strong ties. We also observe a great disparity in social capital possession between rural migrants and urban local residents. Although social capital from strong ties seems to be more important for rural migrants than for urbanites, local ties and high-status ties do not seem to benefit rural migrants. Hence, migrants not only suffer severe social capital deficits but also capital return deficits. Given the strong income returns on social capital and the substantial differences in access to and return on social capital between migrants and urban residents, social capital is consequently found to explain a large part of the income inequality between the two groups. Overall, our findings reveal macro-structural effects on the role of social capital in labor market stratification. In China, the lack of formal labor market mechanisms continues to create both a strong need for and opportunities for economic actions to be organized around informal channels via social relations. Yet, the long-standing institutional exclusion of migrants caused by the household registration system has resulted in pervasive social exclusion and discrimination which have substantially limited rural migrants’ accumulation and mobilization of social capital. Under these conditions, social capital reinforces the economic inequality between migrants and urban residents in China. Such empirical evidence adds to our understanding of the role of social capital in the economic integration of migrants and in shaping intergroup inequality in general.     

Communicating Global Activism

Many observers doubt the capacity of digital media to change the political game. The rise of a transnational activism that is aimed beyond states and directly at corporations, trade and development regimes offers a fruitful area for understanding how communication practices can help create a new politics. The Internet is implicated in the new global activism far beyond merely reducing the costs of communication, or transcending the geographical and temporal barriers associated with other communication media. Various uses of the Internet and digital media facilitate the loosely structured networks, the weak identity ties, and the patterns of issue and demonstration organizing that define a new global protest politics. Analysis of various cases shows how digital network configurations can facilitate: permanent campaigns; the growth of broad networks despite relatively weak social identity and ideology ties; transformation of individual member organizations and whole networks; and the capacity to communicate messages from desktops to television screens. The same qualities that make these communication-based politics durable also make them vulnerable to problems of control, decision-making and collective identity.     

Functional specificity in discussion networks: The influence of general and problem-specific networks on health outcomes

Though commonly used in social science research to measure the influence of social networks, the link between discussing “important matters” within networks and the achievement of instrumental ends is frequently unspecified or untested. To address this gap, we explore the consequences of using the general “important matters” approach versus one in which the substance of discussions is directly linked to the outcomes of interest. The egocentric social networks of people experiencing an acute health crisis are examined. We identify the characteristics of and the degree of membership overlap between “important matters” and “health matters” discussants, and explore their relative power in explaining a wide range of health and health services-related outcomes. We find no evidence for the influence of “important matters” networks, while characteristics of “health matters” networks demonstrate a significant effect across all models.     

How social media transform migrant networks and facilitate migration

We argue that social media are not only new communication channels in migration networks, but also that they actively transform the nature of these networks and thereby facilitate migration. Despite some limitations, which stem from the ‘digital divide’ and the lower trustworthiness of virtual ties, qualitative data reveal four relevant ways in which social media facilitate international migration. First, they enhance the possibilities of maintaining strong ties with family and friends. Second, they address weak ties that are relevant to organizing the process of migration and integration. Third, they establish a new infrastructure consisting of latent ties. Fourth, they offer a rich source of insider knowledge on migration that is discrete and unofficial. This makes potential migrants ‘streetwise’ when undertaking migration. Based on these empirical findings we conclude that social media are transforming migration networks and thereby lowering the threshold for migration.     

Spatial distance and mobile business social network density

Following the increasing adoption of mobile communication, scholars have shown interest in the role of place on the structure of mobile social networks. The purpose of this study is to investigate the association between spatial distance and the closure and diversity of businesses mobile social networks. We used a database that aggregates actual mobile communication patterns of business users of a large Israeli cell phone company (n?= 16,199). Our findings, among a large sample of businesses, provide support for the place and mobile communication perspective. The results reveal a negative association between spatial distance and mobile business communication networks. As spatial distance between business network members increases, business social ties through mobile communication decreases. Furthermore, the results also revealed a negative association between spatial distance and mobile network density. As the spatial distance between business users increases, the density of the mobile communication network diminishes. Physical proximity promotes the development of dense business networks. The implications of the findings are discussed.     

Exploring the role of network diversity and resources in relationship to generalized trust in Norway

Several studies suggest a positive relationship between social capital and generalized trust. Employing a network understanding of social capital (Lin, 2001), this study questions which aspects of social networks may be linked with generalized trust. It investigates whether the diversity of social networks and the socio-economic status of one’s contacts are linked with generalized trust in the Norwegian, egalitarian context. The analyses examine these patterns in relationship to both kin and non-kin contacts. The study employs data from the first Norwegian survey that includes the position generator (PG). The empirical analyses show that extensive social networks are indeed linked to higher levels of generalized trust, but that this relationship is limited to non-kin contacts. Concerning the link between network resources and generalized trust, there is evidence of a more general association with generalized trust that holds when considering both kin and non-kin contacts. These results are a first step in developing a more nuanced discussion of the mechanisms associated with generalized trust and highlight the importance of employing measures that account for the homophily of networks when investigating their relationship to trust.     

Are social networks technologically embedded?: How networks are changing today with changes in communication technology

Communication mediated by various technologies (from ordinary mail to today's Information and Communication Technologies (ICT)) provides important evidence for the study of social networks. Given that networks generate the possibility of interpersonal communication, data on technology use can provide important information on sociability. However, it is also true that personal networks not only shape, but also are shaped by technological means for communication, since these entail the re-constituting of social ties and the re-drawing of social boundaries. We use material from empirical studies carried out over the last 3 years to develop our hypothesis of the way forms of relationship change with technology. In particular, we try to understand the relationship between social networks (a set of social ties possessing one or more relational dimensions), exchanges between actors (made up of a succession of embodied gestures and language acts) and the various technical means for communication available today, which enable an exchange to be completed. Each of these three poles poses constraints on interaction, and provides resources for it, and thus all three shape the form relational practices take. Empirical data show how technological means of communication allow people to re-negotiate the constraints of individual time rhythms, and of who one communicates with. They also illustrate how the relational economy (and power) is affected by the deployment of communication technologies. Tools of communication provide new resources to negotiate individual timetables and social exchanges, making it possible to adjust roles, hierarchies and forms of power in relational economies. We argue that the general change observed over the last 20 years is from established roles to mutual reachability. The traditional communication model, where tele-communication is used to connect people who are physically separated from each other, is gradually being supplanted with a new pattern of “connected presence”. In this new mode other people are telephoned, “SMSed”, seen and mailed in alternated way and small gestures or signs of attention are at least as important as the message content itself.     

Partitioning signed social networks

Structural balance theory has proven useful for delineating the blockmodel structure of signed social networks. Even so, most of the observed signed networks are not perfectly balanced. One possibility for this is that in examining the dynamics underlying the generation of signed social networks, insufficient attention has been given to other processes and features of signed networks. These include: actors who have positive ties to pairs of actors linked by a negative relation or who belong to two mutually hostile subgroups; some actors that are viewed positively across the network despite the presence of negative ties and subsets of actors with negative ties towards each other. We suggest that instead viewing these situations as violations of structural balance, they can be seen as belonging to other relevant processes we call mediation, differential popularity and internal subgroup hostility. Formalizing these ideas leads to the relaxed structural balance blockmodel as a proper generalization of structural balance blockmodels. Some formal properties concerning the relation between these two models are presented along with the properties of the fitting method proposed for the new blockmodel type. The new method is applied to four empirical data sets where improved fits with more nuanced interpretations are obtained.     

Information communities: The network structure of communication

This study puts forward a variable clique overlap model for identifying information communities, or potentially overlapping subgroups of network actors among whom reinforced independent links ensure efficient communication. We posit that the average intensity of communication between related individuals in information communities is greater than in other areas of the network. Empirical tests show that the variable clique overlap model is indeed more effective in identifying groups of individuals that have strong internal relationships in communication networks relative to prior cohesive subgroup models; the pathways generated by such an arrangement of connections are particularly robust against disruptions of information transmission. Our findings extend the scope of network closure effects proposed by other researchers working with communication networks using social network methods and approaches, a tradition which emphasizes ties between organizations, groups, individuals, and the external environment.     

Overlapping crime: Stability and specialization of co-offending relationships

Dyadic analyses of relationships between criminals have mostly ignored the multiplex nature of criminal ties. This study attempts to provide a more complete assessment of co-offending networks by incorporating the different types of crime that relate individuals with each other. Drawing on a large dataset of arrests in Quebec between 2003 and 2009, we focus on co-offending stability and specialization and illustrate how co-offending networks based on different types of criminal activities overlap. We portray a pattern of co-offending, which extends debate of criminal specialization/versatility to the dyadic level. Our study illustrates the ways in which the frequency and spectrum of crime include a relational component. More generally, the article emphasizes the need to consider the semantics of network ties, and further, the association between different types of networks, which ultimately offers a reassessment of social structure.     

Unless you go online you are on your own: blogging as a bridge in para-sport

Since its inception, the Web has been described as a liberating technology permitting individuals with disabilities to surmount barriers that otherwise prevent full societal engagement. Subsequent studies of Web-based communication have instead reported that disabling conditions are reproduced rather than challenged online. This paper uses interviews with 25 para-sport participants to provide an empirical account of how the affordances of the Web are leveraged in disability sport networks. Our findings suggest that individuals with disabilities are using blogs, Facebook, Twitter, and other forms of online communication to find information, engage in advocacy and outreach projects, and form strong networks that extend online and offline. We discuss our findings in light of Putnam’s conceptualization of bridging and bonding social capital, and describe how individuals and groups use weak ties to disseminate information and strong ties to foster a sense of belonging.     

Extrapolative simulation of neighborhood networks based on population spatial distribution: Do they predict crime?

Objectives

Previous criminological scholarship has posited that network ties among neighborhood residents may impact crime rates, but has done little to consider the specific ways in which network structure may enhance or inhibit criminal activity. A lack of data on social ties has arguably led to this state of affairs. We propose to avoid this limitation by demonstrating a novel approach of extrapolatively simulating network ties and constructing structural network measures to assess their effect on neighborhood crime rates.

Methods

We first spatially locate the households of a city into their constituent blocks. Then, we employ spatial interaction functions based on prior empirical work and simulate a network of social ties among these residents. From this simulated network, we compute network statistics that more appropriately capture the notions of cohesion and information diffusion that underlie theories of networks and crime.

Results

We show that these network statistics are robust predictors of the levels of crime in five separate cities (above standard controls) at the very micro geographic level of blocks and block groups.

Conclusions

We conclude by considering extensions of the approach that account for homophily in the formation of network ties.     

It's not who you know,it's how you know them: Who exchanges what with whom?

Reciprocity – doing for others if they have done for you – is a key way people mobilize resources to deal with daily life and seize opportunities. In principle, reciprocity (the Golden Rule) is a universal norm. In practice, it is variable. Personal networks rarely operate as solidarities and as such, people cannot count on all the members of their networks to provide help all the time. Rather, social support comes uncertainly from a variety of ties in networks. This paper uses survey research to understand the variable and contingent nature of reciprocity and inquires about the kinds of resources exchanged between people. We investigate the extent to which interpersonal ties, network characteristics, and people's personal characteristics (e.g., gender) affect the nature of reciprocal relationships. The evidence is extraordinarily clear on one subject – giving support is strongly associated with getting it. Analyses show that getting support from network members is the key to East Yorkers reciprocating – usually in kind but sometimes with other forms of support.     

Residential mobility and the spatial dispersion of personal networks: Effects on social support

Using a representative national sample of personal networks, this article explores how the spatial dispersion of networks, residential mobility and social support are linked. Three issues will be addressed here. Firstly, how is the spatial dispersion of personal networks related to individuals’ social characteristics, network composition and residential mobility? Secondly, how do the spatial dispersion of networks, residential mobility and their combined effect influence the number and (thirdly) the structure of emotional support ties? Results showed that the extent of the support was affected neither by the geographical distribution of the networks nor by residential mobility. Living far from one's birthplace, however, exerted two distinct, and opposite effects on the support network structure. On the one hand, mobility led to high spatial dispersion of personal contacts, which in turn favored a sparsely knit network centered around the mobile individual. On the other hand, by controlling for the effect of distance between the contacts, we found that individuals that cited long-distance ties tended to be part of more transitive support networks than those that cited local ties. We interpreted the latter effect as evidence that transitive ties may survive greater spatial distances than intransitive ones. These findings are discussed in view of spatial mobility and social network research.     

Trust and social capital in the regulation of lending activities

When a bank grants a loan, it takes the risk that the borrower will not honor his debt. To reduce this uncertainty, banks have created instrumental evaluation methods in order to try to evaluate the risk more objectively. An analysis of financial counselors’ practices shows the limits of these methods. To obtain information needed for the financial risk evaluation and to reduce the information asymmetry between bankers and borrowers, financial counselors integrate social networks to establish bonds of trust and to accumulate social capital. The quality of the social bond determines the quality of the gathered information and therefore the quality of the risk evaluation. Bank management is aware of the limits of instrumental methods and the importance of social risk evaluation. To improve their economic efficiency, they modify their work organization and their management practices so as to facilitate the emergence of a bond of trust and the accumulation of social capital by their financial counselors. The analysis of economic actors’ speech and behavior involved in activities of credit shows that behind the claimed altruism nature of the trust relationship exists an economic rationality whose social and temporal horizons of optimization differ from the model of the trade exchange seen in conventional economic theory.