Chapter 9

Economic Networks

Abstract

Networks concerning economic exchanges are discussed in this chapter. The market is a special form of exchange network characterized by exchanges that produce unequal economic value for its participants. Labor markets interface potential employees with employers through transaction of jobs. It is said that weak ties are the most instrumental network links for job seekers. Consumer markets interface potential consumers with producers via contracts for goods and services. According to Karl Polanyi, embeddedness occurs since individuals most often repeat financial exchanges with those with whom there is a positive exchange history. In networks, this leads to creation of stagnant exchange communities. Gale-Shapley ...

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