Computational Economics

, Volume 32, Issue 4, pp 407–413

Network Formation Under Cumulative Advantage: Evidence from The Cambridge High-Tech Cluster

Article

DOI: 10.1007/s10614-008-9145-3

Cite this article as:
Gnutzmann, H. Comput Econ (2008) 32: 407. doi:10.1007/s10614-008-9145-3

Abstract

When joining a social network, the already well-connected often make for especially attractive partners because they can facilitate links to other network members. However, the effect is potentially weakened by increasing redundancy of contacts with network size. We consider the trade-off between these two factors in a dataset of the Cambridge High-Tech Cluster and compare results with the county of Cambridgeshire as a whole. As expected, network effects are stronger in the former, but in both datasets, redundancy does not offset the benefits of reach in attracting new partners.

Keywords

Social networksCumulative advantageMonte Carlo simulation

Copyright information

© Springer Science+Business Media, LLC. 2008

Authors and Affiliations

  1. 1.European University InstituteFlorenceItaly