IDEAS home Printed from https://ideas.repec.org/a/plo/pone00/0225346.html
   My bibliography  Save this article

The winner takes it all—Competitiveness of single nodes in globalized supply networks

Author

Listed:
  • Chengyuan Han
  • Dirk Witthaut
  • Marc Timme
  • Malte Schröder

Abstract

Quantifying the importance and power of individual nodes depending on their position in socio-economic networks constitutes a problem across a variety of applications. Examples include the reach of individuals in (online) social networks, the importance of individual banks or loans in financial networks, the relevance of individual companies in supply networks, and the role of traffic hubs in transport networks. Which features characterize the importance of a node in a trade network during the emergence of a globalized, connected market? Here we analyze a model that maps the evolution of global connectivity in a supply network to a percolation problem. In particular, we focus on the influence of topological features of the node within the underlying transport network. Our results reveal that an advantageous position with respect to different length scales determines the competitiveness of a node at different stages of the percolation process and depending on the speed of the cluster growth.

Suggested Citation

  • Chengyuan Han & Dirk Witthaut & Marc Timme & Malte Schröder, 2019. "The winner takes it all—Competitiveness of single nodes in globalized supply networks," PLOS ONE, Public Library of Science, vol. 14(11), pages 1-13, November.
  • Handle: RePEc:plo:pone00:0225346
    DOI: 10.1371/journal.pone.0225346
    as

    Download full text from publisher

    File URL: https://journals.plos.org/plosone/article?id=10.1371/journal.pone.0225346
    Download Restriction: no

    File URL: https://journals.plos.org/plosone/article/file?id=10.1371/journal.pone.0225346&type=printable
    Download Restriction: no

    File URL: https://libkey.io/10.1371/journal.pone.0225346?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Gert Sabidussi, 1966. "The centrality index of a graph," Psychometrika, Springer;The Psychometric Society, vol. 31(4), pages 581-603, December.
    2. repec:cup:cbooks:9780511771576 is not listed on IDEAS
    3. Krugman, Paul, 1991. "Increasing Returns and Economic Geography," Journal of Political Economy, University of Chicago Press, vol. 99(3), pages 483-499, June.
    4. Venkatesh Bala & Sanjeev Goyal, 2000. "A Noncooperative Model of Network Formation," Econometrica, Econometric Society, vol. 68(5), pages 1181-1230, September.
    5. Watts, Alison, 2001. "A Dynamic Model of Network Formation," Games and Economic Behavior, Elsevier, vol. 34(2), pages 331-341, February.
    6. Brousseau Eric & Penard Thierry, 2007. "The Economics of Digital Business Models: A Framework for Analyzing the Economics of Platforms," Review of Network Economics, De Gruyter, vol. 6(2), pages 1-34, June.
    7. Carlo Piccardi & Lucia Tajoli, 2018. "Complexity, centralization, and fragility in economic networks," PLOS ONE, Public Library of Science, vol. 13(11), pages 1-13, November.
    8. Dennie van Dolder & Vincent Buskens, 2014. "Individual Choices in Dynamic Networks: An Experiment on Social Preferences," PLOS ONE, Public Library of Science, vol. 9(4), pages 1-16, April.
    9. Easley,David & Kleinberg,Jon, 2010. "Networks, Crowds, and Markets," Cambridge Books, Cambridge University Press, number 9780521195331, October.
    10. repec:dau:papers:123456789/7127 is not listed on IDEAS
    11. Jackson, Matthew O. & Watts, Alison, 2002. "The Evolution of Social and Economic Networks," Journal of Economic Theory, Elsevier, vol. 106(2), pages 265-295, October.
    12. Atabati, Omid & Farzad, Babak, 2014. "A strategic model for network formation," MPRA Paper 62529, University Library of Munich, Germany.
    13. Editors The, 2007. "From the Editors," Basic Income Studies, De Gruyter, vol. 2(1), pages 1-5, June.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Pandey, Siddhi Gyan, 2021. "Evolution of cooperative networks," Working Papers 21/346, National Institute of Public Finance and Policy.
    2. , D. & Tessone, Claudio J. & ,, 2014. "Nestedness in networks: A theoretical model and some applications," Theoretical Economics, Econometric Society, vol. 9(3), September.
    3. Pongou, Roland & Serrano, Roberto, 2016. "Volume of trade and dynamic network formation in two-sided economies," Journal of Mathematical Economics, Elsevier, vol. 63(C), pages 147-163.
    4. Frank H. Page & Myrna H. Wooders, 2009. "Endogenous Network Dynamics," Working Papers 2009.28, Fondazione Eni Enrico Mattei.
    5. Joost Vandenbossche & Thomas Demuynck, 2013. "Network Formation with Heterogeneous Agents and Absolute Friction," Computational Economics, Springer;Society for Computational Economics, vol. 42(1), pages 23-45, June.
    6. Kirchsteiger, Georg & Mantovani, Marco & Mauleon, Ana & Vannetelbosch, Vincent, 2016. "Limited farsightedness in network formation," Journal of Economic Behavior & Organization, Elsevier, vol. 128(C), pages 97-120.
    7. Gil S. Epstein & Odelia Heizler-Cohen, 2016. "The Formation of Immigrant Networks in the Short and the Long Run," Economies, MDPI, vol. 4(3), pages 1-16, July.
    8. Péter Bayer & Ani Guerdjikova, 2020. "Optimism leads to optimality: Ambiguity in network formation," Working Papers hal-03005107, HAL.
    9. Chenghong Luo & Ana Mauleon & Vincent Vannetelbosch, 2021. "Network formation with myopic and farsighted players," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 71(4), pages 1283-1317, June.
    10. Beal, Sylvain & Querou, Nicolas, 2007. "Bounded rationality and repeated network formation," Mathematical Social Sciences, Elsevier, vol. 54(1), pages 71-89, July.
    11. Page, Frank Jr. & Wooders, Myrna H. & Kamat, Samir, 2005. "Networks and farsighted stability," Journal of Economic Theory, Elsevier, vol. 120(2), pages 257-269, February.
    12. Arifovic, Jasmina & Eaton, B. Curtis & Walker, Graeme, 2015. "The coevolution of beliefs and networks," Journal of Economic Behavior & Organization, Elsevier, vol. 120(C), pages 46-63.
    13. Pongou, Roland & Serrano, Roberto, 2013. "Dynamic Network Formation in Two-Sided Economies," MPRA Paper 46021, University Library of Munich, Germany.
    14. Michael Caldara & Michael McBride, 2014. "An Experimental Study of Network Formation with Limited Observation," Working Papers 141501, University of California-Irvine, Department of Economics.
    15. Swapnil Dhamal & Y. Narahari, 2015. "Formation of Stable Strategic Networks with Desired Topologies," Studies in Microeconomics, , vol. 3(2), pages 158-213, December.
    16. Marco Mantovani & Georg Kirchsteiger & Ana Mauleon & Vincent Vannetelbosch, 2011. "Myopic or Farsighted? An Experiment on Network Formation," Working Papers 2011.45, Fondazione Eni Enrico Mattei.
    17. Bryan S. Graham, 2015. "Methods of Identification in Social Networks," Annual Review of Economics, Annual Reviews, vol. 7(1), pages 465-485, August.
    18. He, Simin & Zou, Xinlu, 2024. "Public goods provision in a network formation game," Journal of Economic Behavior & Organization, Elsevier, vol. 218(C), pages 104-131.
    19. Jun, Tackseung & Kim, Jeong-Yoo, 2007. "Connectivity, stability and efficiency in a network as an information flow," Mathematical Social Sciences, Elsevier, vol. 53(3), pages 314-331, May.
    20. Feri, Francesco, 2007. "Stochastic stability in networks with decay," Journal of Economic Theory, Elsevier, vol. 135(1), pages 442-457, July.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:plo:pone00:0225346. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: plosone (email available below). General contact details of provider: https://journals.plos.org/plosone/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.