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Consequences of Connection Failure - Centrality and the Importance for Cohesion

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  • Belau, Julia
Abstract
This paper suggests a new approach for centrality measures for general (weighted) networks taking into account the importance for cohesion and relative power of connections. While existing literature either ignores the importance for cohesion or measures it by analyzing consequences arising from the failure of whole nodes, this approach analyzes consequences of tie failures. Using cooperative game theory, we assign weights to every tie of the network where the cooperative game accounts for the cohesion of the network. These weights are combined with the weights of the original network where emphasis for the latter and for cohesion can be regulated individually. Then, the degree measure and Eigenvector measure are applied. This provides the first centrality approach accounting for cohesion and relative importance/power of connections. We provide axiomatic characterizations for the degreebased measures in the case of binary networks and discuss computational complexity. Furthermore, we give examples discussing the drawbacks of existing measures in contrast to our suggested one and as a political application, we show how our Approach can be used to forcast government formation by the case of the state parliament election in Hamburg, Germany.

Suggested Citation

  • Belau, Julia, 2014. "Consequences of Connection Failure - Centrality and the Importance for Cohesion," VfS Annual Conference 2014 (Hamburg): Evidence-based Economic Policy 100368, Verein für Socialpolitik / German Economic Association.
    • Handle: RePEc:zbw:vfsc14:100368
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    References listed on IDEAS

    as
    1. Marco Slikker, 2005. "A characterization of the position value," International Journal of Game Theory, Springer;Game Theory Society, vol. 33(4), pages 505-514, November.
    2. Borm, P.E.M. & Owen, G. & Tijs, S.H., 1992. "On the position value for communication situations," Other publications TiSEM 5a8473e4-1df7-42df-ad53-f, Tilburg University, School of Economics and Management.
    3. Gomez, Daniel & Gonzalez-Aranguena, Enrique & Manuel, Conrado & Owen, Guillermo & del Pozo, Monica & Tejada, Juan, 2003. "Centrality and power in social networks: a game theoretic approach," Mathematical Social Sciences, Elsevier, vol. 46(1), pages 27-54, August.
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    More about this item

    JEL classification:

    • C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation

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