Externalities in endogenous sharing economy networks
TL;DR: In this article, the impact of link formation between a pair of agents on the resource availability of other agents in a social cloud network, a special case of end-to-end networks, is investigated.
Abstract: This paper investigates the impact of link formation between a pair of agents on the resource availability of other agents (that is, externalities) in a social cloud network, a special case of endo...
Citations
More filters
TL;DR: In this article, the authors examined how the transformation of green growth from a "beggar-thy-neighbor" approach to a neighbor-friendly approach can be realized.
39 citations
TL;DR: In this paper , the authors investigated the impact of a sharing economy, including the sharing economy users and sharing economy values, on energy efficiency and sustainable economic development in the top ten Asian economies.
6 citations
Posted Content•
01 Jan 2009
TL;DR: In this article, the role of positive and negative externalities of link formation in social networks has been analyzed, and general results that relate situations of positive externalities with stable networks that cannot be “too dense” in a well-defined sense, while situations with negative externality tend to induce too dense networks.
Abstract: Since the seminal contribution of Jackson & Wolinsky 1996 [A Strategic Model of Social and Economic Networks, JET 71, 44-74] it has been widely acknowledged that the formation of social networks exhibits a general conflict between individual strategic behavior and collective outcome. What has not been studied systematically are the sources of inefficiency. We approach this omission by analyzing the role of positive and negative externalities of link formation. This yields general results that relate situations of positive externalities with stable networks that cannot be “too dense” in a well-defined sense, while situations with negative externalities tend to induce “too dense” networks.
4 citations
TL;DR: In this paper , the authors considered the social cloud as an endogenous resource-sharing network, where agents are involved in closeness-based conditional resource sharing and studied the impact of agents' decisions of link addition and deletion on their own local and global resource availability as well as on others' global resources availability.
Abstract: Social cloud has emerged as a case of sharing economy, where socially connected agents share their computing resources within the community. This paper considers the social cloud as an endogenous resource-sharing network, where agents are involved in closeness-based conditional resource sharing. This study focuses on (1) the impact of agents' decisions of link addition and deletion on their own local and global resource availability as well as on others' global resource availability (as spillover effects), (2) the role of agents' closeness in determining spillover effects, (3) agents' link addition behavior, and (4) stability and efficiency of the social cloud. The findings include the following: (i) Agents' decision of link addition (deletion) increases (decreases) their local resource availability. However, these observations do not hold in the case of global resource availability. (ii) In a connected network, agents experience either a positive or a negative spillover effect and there is no case with no spillover effects. Agents observe no spillover effects if and only if the network is disconnected with three or more components. Furthermore, an agent experiences negative spillover if there is no change in its closeness. Although an increase in the closeness of agents is necessary to experience positive spillover effects, the condition is not sufficient. (iii) We study the relation between agents' distance from each other, and their local as well as global resource availabilities. We prove that the local resource availability of an agent from another agent increases with decrease in the distance between them and that maximum local resource availability is obtained from the agent with the least closeness. Using these results, we discuss which agent to add a link to, so as to maximize the local resource availability. We discuss why such results are difficult to establish for global resource availability. However, in a two-diameter network, we show that for an agent, link formation always increases the global resource availability. (iv) We also study resource-sharing network formation and its efficiency in a strategic setting. We prove the existence of a pairwise stable network. Furthermore, we provide a set of conditions for a few prominent network structures (star, complete, wheel, and bipartite networks) to be pairwise stable. We show that the “connected in pairs, otherwise disconnected” network is better than a connected network, in terms of social welfare.
References
More filters
TL;DR: In this article, the authors study the stability and efficiency of social and economic networks when self-interested individuals can form or sever links, and show that there does not always exist a stable network that is efficient.
2,660 citations
TL;DR: In this article, the authors develop a conceptual framework that allows us to define the sharing economy and its close-cousins and understand its sudden rise from an economic-historic perspective.
Abstract: We develop a conceptual framework that allows us to define the sharing economy and its close cousins and we understand its sudden rise from an economic-historic perspective. We then assess the sharing economy platforms in terms of the economic, social and environmental impacts. We end with reflections on current regulations and future alternatives, and suggest a number of future research questions.
761 citations
TL;DR: This study tries to provide a mathematically sound survey of the most important classic centrality measures known from the literature and proposes an axiomatic approach to establish whether they are actually doing what they have been designed to do, and suggests that centrality Measures based on distances, which in recent years have been neglected in information retrieval, do provide high-quality signals.
Abstract: Given a social network, which of its nodes are more central? This question has been asked many times in sociology, psychology, and computer science, and a whole plethora of centrality measures (a.k.a. centrality indices, or rankings) were proposed to account for the importance of the nodes of a network. In this study, we try to provide a mathematically sound survey of the most important classic centrality measures known from the literature and propose an axiomatic approach to establish whether they are actually doing what they have been designed to do. Our axioms suggest some simple, basic properties that a centrality measure should exhibit.Surprisingly, only a new simple measure based on distances, harmonic centrality, turns out to satisfy all axioms; essentially, harmonic centrality is a correction to Bavelas’s classic closeness centrality [Bavelas 50] designed to take unreachable nodes into account in a natural way.As a sanity check, we examine in turn each measure under the lens of information...
407 citations
[...]
261 citations
TL;DR: This paper defines Social Cloud computing, outlining various aspects of Social Clouds, and demonstrates the approach using a social storage cloud implementation in Facebook.
Abstract: Online relationships in social networks are often based on real world relationships and can therefore be used to infer a level of trust between users. We propose leveraging these relationships to form a dynamic "Social Cloud,” thereby enabling users to share heterogeneous resources within the context of a social network. In addition, the inherent socially corrective mechanisms (incentives, disincentives) can be used to enable a cloud-based framework for long term sharing with lower privacy concerns and security overheads than are present in traditional cloud environments. Due to the unique nature of the Social Cloud, a social market place is proposed as a means of regulating sharing. The social market is novel, as it uses both social and economic protocols to facilitate trading. This paper defines Social Cloud computing, outlining various aspects of Social Clouds, and demonstrates the approach using a social storage cloud implementation in Facebook.
248 citations