Social relations and economy: the effects of social ties and networks on economic behavior

We review recent developments in the social network analysis of economic behavior. After discussing core network concepts and relations, we examine research in three subfields where network methods contribute new knowledge and understanding of economic activities. In healthcare systems, interorganizational networks of health providers, physician-patient referral systems, and medical technology innovation and diffusion affect patient health outcomes. Research on national and international production and trade networks includes input-output models, world systems positions, and gravity models. The global interbank financial network was implicated in 2008-09 Global Financial Crisis and Great Recession, while contagion models and stress tests assess the capacity to avoid future meltdowns. In conclusion, we note other economic subfields where social network analysts are creating a flourishing arena of insights and intellectual innovations.