Advertisement

Production Networks

  • Robert P. GillesEmail author
Chapter

Abstract

This chapter introduces elements from network analysis to describe trade infrastructures through which the social division of labour is conducted. We consider connectivity properties and the description of how individual nodes can affect the trade flows in these networks. This leads to a theory of identification and measurement of the power of control in such trade networks. The notion of a critical node set captures these power structures in trade networks. We use these ideas and conceptions to describe production processes that are conducted in any social division of labour, leading to the notion of a production network. This chapter introduces a careful definition of these production networks and considers different topologies to represent different network-institutional production systems.

References

  1. Anthonisse, J.M. 1971. The Rush in a Directed Graph. Technical Report BN 9/71. Amsterdam, The Netherlands: Stichting Mathematisch Centrum.Google Scholar
  2. Aristotle. 350 BCE. The Politics: A Treatise on Government. 1995 ed. Oxford, UK: Oxford University Press.Google Scholar
  3. Barabási, A.-L. 2002. Linked: The New Science of Networks. New York, NY: Perseus Press.Google Scholar
  4. —. 2016. Network Science. Cambridge, UK: Cambridge University Press.Google Scholar
  5. Barabási, A.-L., and R. Albert. 1999. Emergence of Scaling in Random Networks. Science 286: 509–512.CrossRefGoogle Scholar
  6. Bloch, F., M.O. Jackson, and P. Tebaldi. 2016. Centrality Measures in Networks. ArXiv e-prints. arXiv:1608.05845.Google Scholar
  7. Bonacich, P.F. 1987. Power and Centrality: A Family of Measures. American Journal of Sociology 92: 1170–1182.CrossRefGoogle Scholar
  8. Borm, P., R. v. d. Brink, and M. Slikker. 2002. An Iterative Procedure for Evaluating Digraph Competitions. Annals of Operations Research 109: 61–75.CrossRefGoogle Scholar
  9. Brin, S., and L. Page. 1998. The Anatomy of a Large-Scale Hypertext Web Search Engine. Computer Networks 30: 107–117.Google Scholar
  10. Brink, R.v.d., and R.P. Gilles. 1994. A Social Power Index for Hierarchically Structured Populations of Economic Agents. In Imperfections and Behavior in Economic Organizations, ed. R. P. Gilles, and P. H. M. Ruys, chap. 12, 279–318. Boston, MA: Kluwer Academic Publishers.Google Scholar
  11. —. 2000. Measuring Domination in Directed Networks. Social Networks 22: 141–157.CrossRefGoogle Scholar
  12. —. 2009. The Outflow Ranking Method for Weighted Directed Graphs. European Journal of Operational Research 193: 484–491.CrossRefGoogle Scholar
  13. Diestel, R. 2017. Graph Theory. 5th ed. Graduate Texts in Mathematics. Berlin, Germany: Springer.CrossRefGoogle Scholar
  14. Easley, D., and J. Kleinberg. 2010. Networks, Crowds and Markets: Reasoning About a Highly Connected World. Cambridge: Cambridge University Press.CrossRefGoogle Scholar
  15. Evans, D.S. 2003. Some Empirical Aspects of Multi-Sided Platform Industries. Review of Network Economics 2 (3): 191–209.CrossRefGoogle Scholar
  16. Evans, D.S., and R. Schmalensee. 2007. The Industrial Organization of Markets with Two-Sided Platforms. Competition Policy International 3 (1): 151–179.Google Scholar
  17. Freeman, L.C. 1977. A Set of Measures of Centrality Based on Betweenness. Sociometry 40: 35–41.CrossRefGoogle Scholar
  18. Gilles, R.P. 2010. The Cooperative Game Theory of Networks and Hierarchies. Theory and Decision Library. Berlin, Germany: Springer.Google Scholar
  19. —. 2018. Economic Wealth Creation and the Social Division of Labour: I — Institutions and Trust. London, UK: Palgrave Macmillan.Google Scholar
  20. Gilles, R.P., and D. Diamantaras. 2013. Platform Competition as Network Contestability. Working Paper. Belfast, UK: Queen’s University Management School.Google Scholar
  21. Jackson, M.O. 2008. Social and Economic Networks. Princeton, NJ: Princeton University Press.Google Scholar
  22. Jackson, M.O., and A. Wolinsky. 1996. A Strategic Model of Social and Economic Networks. Journal of Economic Theory 71: 44–74.CrossRefGoogle Scholar
  23. Katz, L. 1953. A New Status Index Derived from Socio-Metric Analysis. Psychometrika 18: 39–43.CrossRefGoogle Scholar
  24. Leontief, W. 1936. Quantitative Input and Output Relations in the Economic Systems of the United States. Review of Economics and Statistics 18 (3): 105–125.CrossRefGoogle Scholar
  25. Menger, K. 1927. Zur algemeinen Kurventheorie. Fundamenta Mathematicae 10: 96–115.CrossRefGoogle Scholar
  26. Newman, M.E.J. 2010. Networks: An Introduction. Oxford, UK: Oxford University Press.CrossRefGoogle Scholar
  27. Newman, M.E.J., A.-L. Barabási, and D.J. Watts. 2006. The Structure and Dynamics of Networks. Princeton Series in Complexity. Princeton, NJ: Princeton University Press.Google Scholar
  28. Plato. 380 BCE. Republic. 2007 ed. London, UK: Penguin Classics.Google Scholar
  29. Rochet, J.-C., and J. Tirole. 2003. Platform Competition in Two-Sided Markets. Journal of European Economic Association 1 (4): 990–1029.CrossRefGoogle Scholar
  30. Siedlarek, J.-P. 2015. Intermediation in Networks. Working Paper 15-18. Cleveland, US: Federal Reserve Bank of Cleveland.Google Scholar
  31. Sims, O., and R.P. Gilles. 2016. Critical Nodes in Directed Networks. ArXiv e-prints. arXiv:1612.08884.Google Scholar
  32. —. 2017. Extractive Structures in Networks: Definition, Measurement and Formation. Working Paper, Queen’s University Management School.Google Scholar
  33. Sraffa, P. 1960. Production of Commodities by Means of Commodities: Preludeto a Critique of Economic Theory. Cambridge, UK: Cambridge University Press.Google Scholar
  34. Watts, D.J. 1999. Small Worlds: The Dynamics of Networks Between Order and Randomness. Princeton Studies in Complexity. Princeton, NJ: Princeton University Press.Google Scholar
  35. —. 2003. Six Degrees: The Science of a Connected Age. New York, NY: W.W. Norton & Co.Google Scholar
  36. Weyl, E.G. 2010. A Price Theory of Multi-Sided Platforms. American Economic Review 100 (4): 1642–1672.CrossRefGoogle Scholar

Copyright information

© The Author(s) 2019

Authors and Affiliations

  1. 1.Management SchoolQueen’s University BelfastBelfastUK

Personalised recommendations