Graphs and Network Economics

Abstract

Following the standard probabilistic approach, we shall show explicitly the relation between a microscopic and a macroscopic view of an economy in the context of a discrete choice model. Two crucial issues of the graphical applications to the network economy are addressed. The first one concerns the representation richness of the graph, whereas the second one concerns the formation and evolution of the graph when it is applied to social networks. This study can be a starting point to see the relevance of agent-based computational economics to the network economy, in particular, after bringing into the interaction mechanism associated with a network topology