The duality of world cities and firms: comparing networks,hierarchies, and inequalities in the global economy

Much of the research on globalization conceives of the global economy as structured by networks among places, while separately organizational research has examined the role of networks among firms in structuring competition, collaboration, and cooperation. In both cases, position and centrality within the network confers certain advantages and disadvantages, the distribution of which defines a hierarchy. In this article, I explore the idea of dual networks of world cities and firms, then use Breiger's approach to define two such networks: one among 313 world cities, another among 100 advanced producer service firms. Comparison of the degree of inequality in the hierarchies implied by these networks suggest that world city hierarchies are steeper than firm hierarchies (that is there is greater inequality among cities). Thus, even under conditions of footloose global capitalism, place still matters: where a producer is located has more impact than who provides support services.     

ENTRY COORDINATION AND AUCTION DESIGN WITH PRIVATE COSTS OF INFORMATION ACQUISITION

Auction design with endogenous entry is complicated by entry coordination among bidders due to multiple entry equilibria issue. This article studies auction design when information acquisition costs are private information of bidders. We show that this problem can be resolved by sufficient dispersion in these costs. First, we find that a simple second‐price auction with no entry fee and a reserve price equal to the seller's valuation is ex ante efficient, while a revenue‐maximizing auction involves personalized entry fees, which are determined by the hazard rates of their information acquisition cost distribution. Second, we show that sufficient dispersion in the information acquisition costs (more dispersion than a particular uniform distribution by the Bickel‐Lehman dispersive order) can coordinate bidders and implement uniquely the desirable entry. The dispersion in information acquisition costs is also necessary for this “unique implementation” result. (JEL D44, D82)     

Family comes first: Men's and women's personal networks in Tehran

This paper examines the characteristics of middle class Tehranis’ networks, based upon a survey of 318 individuals from the 159 households. The results show that women and men have similar-size networks. However, their networks differ substantially in gender composition, with each having almost two-thirds of network members of their own gender. Men's and women's networks contain a large proportion of kin overall. Most ties tend to be with immediate kin: children, parents and siblings. An immediate kin is usually the socially closest member of a network. Apart from voluntary factors, the importance of kinship ties in men's and women's networks may be the result of the macro-structural conditions under which patterns of social relationships take place.     

Infectious Innovations? The Diffusion of Tactical Innovation in Social Movement Networks,the Case of Suffragette Militancy

This paper explores the diffusion of a tactical innovation – militancy – within the British Suffrage Movement, 1905–1914. It concentrates upon the influences that arise from personal social networks and which affect ego's decision about whether to adopt the new tactic. UCINET is used to map and visualise the activist networks of two suffragettes who made different adoption decisions. This reveals that ‘weak ties’ to ‘innovation champions’ (i.e. suffragette ‘travelling organisers’) connected both women to opportunities to learn about, observe and adopt militancy. In order to explain why one suffragette adopted the tactic and the other did not, however, there is a need to link structural and cultural analyses of social networks together. Here, I do this by following up empirically what Fuhse [Fuhse, J. (2009). The meaning structure of social networks. Sociological Theory, 27, 51–73] has called the ‘meaning structure of the network’ consisting of interpersonal expectations and network culture. I propose that the ‘meaning structure’ of the network is linked to the structural patterning of social ties – and the subjective meanings of ego – through the communicative interaction in which they both are rooted [Mische, A. (2003). Cross-talk in movements: Rethinking the culture-network link. In M. Diani & D. McAdam (Eds.), Social movements and networks: Relational approaches to collective action (pp. 258–280). Oxford/New York: Oxford University Press]. Focusing on communicative interaction and intersubjective meanings indicates that there is value in approaching personal networks as socio-cultural ‘lifeworlds’ [Habermas, J. (1987). The theory of communicative action, volume 2: System and lifeworld. Boston, MA: Beacon Press; Passy, F., & Giugni, M. (2000). Life-spheres, networks, and sustained participation in social movements: A phenomenological approach to political commitment. Sociological Forum, 15, 117–144.). This approach is particularly valuable in highlighting the construction of a ‘moral point of view’ within networks, which fundamentally shapes the symbolic legitimacy of culturally controversial tactics.     

PRODUCT DIFFERENTIATION UNDER CONGESTION: HOTELLING WAS RIGHT

We introduce negative network externalities—“congestion costs”—into H. Hotelling's (1929) model of spatial competition with linear transportation costs. For any firm locations on opposite sides of the midpoint, a pure strategy price equilibrium exists and is unique if congestion costs are strong enough relative to transportation costs. We analyze product differentiation and find that Hotelling's Principle of Minimum Differentiation comes closer to holding in the presence of congestion costs. The greater are congestion costs, the less differentiated products can be in (locationally symmetric) equilibrium. In fact, minimum differentiation comes arbitrarily close to holding depending on the magnitude of these costs relative to transportation costs. Intuitively, greater congestion effects stabilize competition at closer quarters, eliminating aggressive pricing equilibria. Thus, negative network externalities can play a significant role in product differentiation. (JEL D21, L15, R12)     

THE ROLE OF PARENTS IN THE MAINTENANCE OF SECOND GENERATION VIETNAMESE CULTURAL BEHAVIORS

Although previous research shows that biculturalism is adaptive for the children of immigrants, in the United States there is a great deal of pressure for assimilation. This study examines whether parents who model cultural behaviors and encourage interaction with co-ethnics increase the likelihood that their adult children will engage in cultural behaviors. Data are from a survey of second generation Vietnamese members between the ages of 18 and 30 (N=66) living in Atlanta. Results indicate parents' cultural behaviors (speaking and reading) affect adult children's cultural skills and the ethnic composition of their social networks enhances the likelihood that their children's networks are ethnically based. Moreover, the parents' influence is direct, not mediated by children's social networks. Mothers exert stronger influence than fathers, but respondents' own gender does not predict cultural retention. We discuss results in terms of implications for maintaining ethnic cultures in a context that encourages assimilation.     

Not Necessarily Solidarity

Since the idea of “women's rights as human rights” emerged, there has been a wave of international donors, organizations and transnational feminist activists successfully delivering pressure and resources in the struggle to mitigate violence against women worldwide. Through these transnational networks, decisions regarding which local problems to address and how to manage them are often made at the international level. Most scholarship has rightly celebrated the advances for women's rights that have been made possible due to the impact of international organizations and transnational advocacy networks. However, there are many dilemmas that arise from this North-centric approach to assigning and managing priorities – especially among development aid organizations. Coordination with international donors is often necessary and has been a major source of advances. However, there are still some potentially harmful impacts of having to engage in these networks in order to address violence against women – including a disproportionate focus on short-term results while neglecting long-term goals. This article articulates these dilemmas and explains how international feminist human rights norms can be more successfully translated into a stronger sense of solidarity across borders and more sustainable advances for women. Examples are drawn from the Central American countries of Costa Rica, El Salvador, Guatemala and Nicaragua.     

Bridging: Locating critical connectors in a network

This paper proposes several measures for bridging in networks derived from Granovetter's (1973) insight that links which reduce distances in a network are important structural bridges. Bridging is calculated by systematically deleting links and calculating the resultant changes in network cohesion (measured as the inverse average path length). The average change for each node's links provides an individual level measure of bridging. We also present a normalized version which controls for network size and a network-level bridging index. Bridging properties are demonstrated on hypothetical networks, empirical networks, and a set of 100 randomly generated networks to show how the bridging measure correlates with existing network measures such as degree, personal network density, constraint, closeness centrality, betweenness centrality, and vitality. Bridging and the accompanying methodology provide a family of new network measures useful for studying network structure, network dynamics, and network effects on substantive behavioral phenomenon.     

The ‘Glasgow King of Billingsgate’: James MacQueen and an Atlantic Proslavery Network1

This article examines the ‘imperial career’ of James MacQueen, one of the most outspoken critics of the British antislavery campaign in the 1820s and 1830s. Rather than considering the particular proslavery discourses that he articulated in his writing, however, the article focuses on his central place within an Atlantic network of proslavery advocacy. Using published and unpublished sources to explore this network, the article begins with MacQueen's time as a plantation overseer in Grenada. Next, it considers his involvement in the slavery controversy after he returned to Glasgow, including his attack on the History of Mary Prince (1831) and its aftermath. Finally, the article considers MacQueen's unexpected role in the Niger Expedition following the abolition of British slavery. In this way, the article demonstrates MacQueen's central place in nineteenth-century anti-abolitionism.     

To tell the truth: Measuring concordance in multiply reported network data

Social network data must accurately reflect actors’ relationships to properly estimate network features. Here, we examine multiple reports of sexual, drug-sharing and social tie data on high-risk networks in Colorado Springs. By comparing multiple reports on the same ties, we can evaluate the reliability of this study's network data. Our findings suggest that these data have a high level of reporting agreement. From these findings, we discuss implications for analysis of these and similar data and provide suggestions for future social network data collection efforts.     

Interethnic Relationships: The Role of Social Network Diversity

We examine the degree to which ethnic diversity in social networks relates to the frequency of interethnic romantic relationships for 318 college students. In a multinomial logit, we find that the odds of having an interethnic relationship once or twice, versus never, increase significantly if the respondent has a relatively ethnically diverse friendship network, is male, and supports interethnic dating. The odds of having an interethnic relationship often, versus once or twice, are significantly higher for persons of color and when the friends of the respondent's parents are relatively diverse ethnically. Findings from open‐ended data also provide support for a social network perspective, and point to the processes by which networks, gender, and ethnicity shape interethnic courtship.     

STRUCTURAL ESTIMATION OF SEQUENTIAL GAMES OF COMPLETE INFORMATION

In models of strategic interaction, there may be important order of entry effects if one player can credibly commit to an action (e.g., entry) before other players. If one estimates a simultaneous‐move model, then the move‐order effects will be confounded with the payoffs. This article considers nonparametric identification and simulation‐based estimation of sequential games of complete information. Relative to simultaneous‐move games, these models avoid the problem of multiple equilibria and require fewer payoff normalizations. We apply the estimator in several Monte Carlo experiments and to study entry‐order effects using data from the airline industry. (JEL C57, C15, L93)     

LIVING IN TWO NEIGHBORHOODS—SOCIAL INTERACTION EFFECTS IN THE LABORATORY

Field evidence suggests that people belonging to the same group often behave similarly, that is, behavior exhibits social interaction effects. We conduct a laboratory experiment that avoids the identification problem present in the field and allows us to study the behavioral logic of social interaction effects. Our novel design feature is that each subject is simultaneously a member of two randomly assigned and identical groups where only members (“neighbors”) are different. We study behavior in a coordination game with multiple equilibria and a public goods game, which has only one equilibrium in material payoffs. We speak of social interactions if the same subject at the same time makes group‐specific decisions that depend on their respective neighbors' decisions. We find that a majority of subjects exhibit social interaction effects both when the game has multiple equilibria in material payoffs and when it only has one equilibrium. (JEL C91, H41, K42, H26)     

The structure of educational research: The role of multivocality in promoting cohesion in an article interlock network

Researchers interested in the social and intellectual features of scholarly knowledge have emphasized the importance of small-scale, informally organized groups of people interested in the same or closely related research problems. The structure of these social networks, in large part, influences the way which research problems are identified, studied and transformed into policy. Building on popular concerns about the state of the educational research field, this study examines what its structure implies about the field's ability to integrate ideas and practices. Using data about which articles readers access from the online database of the Teachers College Record, one of the field's more popular journals, it is shown that the article interlock network exhibits a structure that fits parameters of both small-world and structurally cohesive models. Furthermore, this study unpacks the network's community structure to show that those articles that serve as the core through which much of the network is connected possess a multivocal identity; an ambiguous identity that appeals to multiple audiences simultaneously. Results are suggestive of mechanisms that could be used to promote greater cohesion across the network's distinct communities.     

Networks of home,travel and use during Hong Kong return migration: thinking topologically about the spaces of human–material practices

Despite acknowledgements that migration depends on human–material practices, research into migrant materialities has often focused on limited spatiotemporal frames and the relation of objects to (inter)personal concerns. Taking everyday interactions with materials as of inherent interest, I examine how thinking topologically about multiple spaces helps to trace migrants’ relationships to changing groups of objects. After introducing Mol and Law's concepts of regional, network and fluid space, I discuss three types of networks with diverse relations to them – networks of home, for travel, and of use. Though networks of home are important to migrants, and can remain intact while travelling across regions, they also demonstrate considerable fluidity when interacting with other networks, which themselves affect adaptation and everyday practices. Supported by examples from Hong Kong return migrants, I show how managing multiple material networks, each with multiple spatial relations, is central to being a migrant.     

FIELD EXPERIMENTS ON THE ANCHORING OF ECONOMIC VALUATIONS

A pillar of behavioral research is that preferences are constructed during the process of choice. A prominent finding is that uninformative numerical “anchors” influence judgment and valuation. It remains unclear whether such processes influence market equilibria. We conduct two experiments that extend the study of anchoring to field settings. The first experiment produces evidence that some consumers' valuations can be anchored in novel situations; there is no evidence that experienced agents are influenced by anchors. The second experiment finds that anchors have only transient effects on market outcomes that converge to equilibrium predictions after a few market periods. (JEL C93, D11)     

A comparative study of social network models: Network evolution models and nodal attribute models

This paper reviews, classifies and compares recent models for social networks that have mainly been published within the physics-oriented complex networks literature. The models fall into two categories: those in which the addition of new links is dependent on the (typically local) network structure (network evolution models, NEMs), and those in which links are generated based only on nodal attributes (nodal attribute models, NAMs). An exponential random graph model (ERGM) with structural dependencies is included for comparison. We fit models from each of these categories to two empirical acquaintance networks with respect to basic network properties. We compare higher order structures in the resulting networks with those in the data, with the aim of determining which models produce the most realistic network structure with respect to degree distributions, assortativity, clustering spectra, geodesic path distributions, and community structure (subgroups with dense internal connections). We find that the nodal attribute models successfully produce assortative networks and very clear community structure. However, they generate unrealistic clustering spectra and peaked degree distributions that do not match empirical data on large social networks. On the other hand, many of the network evolution models produce degree distributions and clustering spectra that agree more closely with data. They also generate assortative networks and community structure, although often not to the same extent as in the data. The ERGM model, which turned out to be near-degenerate in the parameter region best fitting our data, produces the weakest community structure.     

LEARNING ABOUT EDUCATION

Limited human capital investment is a common characteristic of low‐income countries despite the fact that estimated returns to educational investment in low‐income countries are generally higher than those in high‐income countries. Empirical evidence suggests that income and credit constraints can only account for a part of this underinvestment. Recent experimental evidence shows that families' misperceptions about the returns to education play a role in their low‐investment levels. This paper builds a heterogeneous‐agent model of human capital and growth that incorporates an adaptive learning mechanism to capture the way agents form perceptions about returns to education. We find natural conditions guaranteeing existence of stable equilibria. Along transition paths, agents' misperceptions about returns to education depress realized returns, which serves to reenforce and perpetuate low human‐capital investment. If human capital investments have both private and public returns, we find multiple stable equilibria, including those which are characterized by low investment and low returns. (JEL D83, O10, I25)     

Resources,Not Capital: A Case Study of the Gendered Distribution and Productivity of Social Network Ties in Rural Ethiopia*

Abstract Poor people make use of a variety of contextually relevant resources to pursue their livelihood strategies, and there is wide empirical evidence that opportunities and contraints for accessing these may vary considerably for women and men, particularly in the rural areas of developing countries. In this article, micro-evidence from a case study from a village in rural Ethiopia is used to analyze the role that gender plays in the distribution and productivity of social network ties. In the examined case, women and men have access to different social networks: women have access to bonded or relational social resources which can yield economic returns only if and when they are bridged, linked to, and associated with men and their networks. This is a result of the prevailing social structure in which men define social norms and implement these through locally available institutions, combined with women's time poverty. Consequently, for rural development interventions to be successful in building and strengthening women's social network ties, adequate attention needs to be paid to mechanisms that make sure that links and connections are in place as well.