BAN434 Social and Economic Networks (E)

• Topics

  Networks are essential in shaping behavior in many environments. For example, economic production and supply chains are organized as networks; new technologies diffuse in the economy through research and development collaboration networks. Social networks pervade our social and financial lives. They are central in transmitting information about job opportunities. They are critical to the advertisement and trade of many goods and services. The presence of networks makes it essential to understand which network structures can emerge and how networks impact behavior.

  Social scientists have used social networks since early in the 20th century. On the other hand, economic networks are a relatively newer research area that emerged in the late 20th century. This thriving field has applications in finance, marketing, macroeconomics, etc. It is a crucial tool for understanding the workings of modern economies. The rise of big data and advanced computational methods has enabled researchers to study economic networks at an unprecedented scale and level of detail, uncovering new insights into the structure and behavior of economies.

  The course introduces networks and applications of social and economic networks. The course aims to provide students with the theoretical foundations of network theory and help them understand behavior and outcomes in networked societies.

  The course contains

  • an overview of social and economic networks, as well as empirical observations about network structure;
  • description of network models and models of network formation;
  • models of how network structures impact behavior: diffusion, learning,  games on networks, and networked markets;
  • practical examples of network applications;
  • methods of network visualization. 

• Learning outcome

  Upon course completion, the students can:

  Knowledge

  Demonstrate comprehensive knowledge of network analysis applicable to real-world data.

  Skills

  • Use the notation and terminology of network science.
  • Visualize, describe, and compare networks.
  • Use the main network models and the primary models of network formation.
  • Analyze processes in networks (analyze how network structures affect networked societies) and understand which network structures are likely to emerge.
  • Developed practical skills in network analysis in R programming language.
  • Analyze real-world networks.

  General competence

  Learn new methods of network analysis and apply them to real-world networks.

• Teaching

  Plenary lectures 2 x (2x45) / week, possibly guest lectures.

• Recommended prerequisites

  Basic knowledge of mathematics (standard concepts from calculus, probability, and statistics, which correspond to MET1 Mathematics for economists and MET2 Statistics for economists).

  An introductory programming experience (preferably in R).

• Required prerequisites

  None

• Credit reduction due to overlap

  None

• Compulsory Activity

  One mandatory assignment. The assignment must be approved to get admission to the exam. 

  Previously approved compulsory activities remain valid.

• Assessment

  Written school exam, 4 hours (pen and paper). The exam has to be answered in English.

• Grading Scale

   A - F.

• Computer tools

  The course uses R, which is open-source. Details regarding the installation of different packages and additional tools will be provided.  

• Literature

  Compulsory literature:

  i) Matthew O. Jackson (2008) Social and Economic Networks, Princeton University Press.

  ii) Selected notes/overheads available in Canvas.

   

  Recommended literature:

  There can be recommendations on further reading (not relevant to the exam).

• Permitted Support Material

  Calculator

  One bilingual dictionary (Category I)

  All written support material permitted (Category III) 

  All in accordance with Supplementary provisions to the Regulations for Full-time Study Programmes at the Norwegian School of Economics Ch.4 Permitted support material https://www.nhh.no/en/for-students/regulations/https://www.nhh.no/en/for-students/regulations/ and https://www.nhh.no/en/for-students/examinations/examination-support-materials/https://www.nhh.no/en/for-students/examinations/examination-support-materials/