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Network centrality, social loops, and utility maximization

  • Hideki FujiyamaEmail author
Article
  • 13 Downloads

Abstract

This study examines the effect of social loops on individual effort. Under a situation wherein agents’ effort induces additional efforts to others through a network, an optimum effort corresponds to the subgraph centrality that captures the number of social loops in a network. In contrast to Bonacich centrality, this centrality avoids a problem of divergence and it is based on bounded rational behaviors. We tested this theoretical fact using data for 122 Japanese university sophomores and juniors from 2013 to 2018. Bonacich cenrality had a divergence problem in all cases. On the other hand, students who had a higher subgraph centrality index tended to put forth more efforts in a class after controlling for the individual characteristics. Subgraph centrality had a robust effect even if we added an effect of other centralities, i.e., out-degree, in-degree, betweenness, and closeness centralities. This fact shows that the social loop of communication was critical in the class of university students.

Keywords

Subgraph centrality Micro-foundation of centralities Peer influence University student network 

JEL Classification

D85 I20 D01 

Notes

Acknowledgements

The author thanks Ryuhei Tsuji for advice about a questionnaire, Kayo Fujimoto for advice about estimation methods and Naoko Matsuda for her helpful comments. I also thank the editor and two anonymous referees for helpful comments.

Compliance with ethical standards

Conflict of interest

As for Conflict of Interest, the author declares that I have no conflict of interest.

Ethical standards

All procedures performed in studies involving human participants were in accordance with the ethical standards of my institution.

Informed consent

Informed consent was obtained from all individual participants included in the study.

Supplementary material

40844_2019_137_MOESM1_ESM.pdf (83 kb)
Supplementary material 1 (PDF 83 kb)

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Copyright information

© Japan Association for Evolutionary Economics 2019

Authors and Affiliations

  1. 1.Faculty of EconomicsDokkyo UniversitySoka-shiJapan

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