Skip to main content
SpringerLink
Log in

Towards Network Economics: The Problem of the Network Modus of Value

  • Conference paper
  • First Online:
Book cover 3rd International Winter School and Conference on Network Science (NetSci-X 2017)

Part of the book series: Springer Proceedings in Complexity ((SPCOM))

Included in the following conference series:

Abstract

Network paradigm is already on the threshold of economic science. This paper addresses conditions for the reality of network economy and the genesis of the network content of value as a base category of economics. Identification of the specifics of network phenomena as a perspective cornerstone of society and economy is carried out. The concept of ontological status is employed as methodological optics for the determination of the maturity of the network content of social and economic categories. The network modus of value is hypothesized on the basis of “affordance” and “preferential attachment”.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Log in via an institution
Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 39.99
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 54.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info
Hardcover Book
USD 54.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

Notes

  1. 1.

    Interactionism is a theoretical perspective, according to which all social phenomena can be comprehended on the base of human interactions. It arose as rejection of the structuralist approach to understanding social phenomena in terms of their relation to a larger structure or through addressing social phenomena of a higher level. Interactionism can be interpreted as early manifestation of network methodology in social sciences due to similarity of their major principle, that is to say, there is nothing but individuals (nodes) and relations (links) between them.

  2. 2.

    In order to secure interactions and networking from structuralist assumptions of privileged structures that are responsible for stability and integrity of society and social objects, B. Latour substituted individuals as nodes for “actants” of heterogeneous networks, in which the distinction between “humans” and “non-humans” was eliminated. This is the core of the Actor-Network Theory (ANT) developed by Latour and his colleagues. Due to the ANT, interactionism (“intersubjectity” in B. Latour’s terms) was transformed into “interobjectivity”. The place of the ANT in the general evolution of the network approach to society will be considered in our next paper.

  3. 3.

    The Austrian School’s physical interpretation of value implies that they deny a specific metric of the world of values. They understand value based on conventional metric and logic of interactions of isolated things, viz., interactions between the human and the good, specifying it as subjective utility. For instance, the concept of distance, identified as a ratio of route to a particular standard of length, appears to be inapplicable for the purpose of measuring distance in network reality; likewise, the concept subjective utility is inapplicable in economics, which is regarded as network.

  4. 4.

    It is possible to say that contrary to the statements of the Austrians, the functioning of their “network” in an implicit form assumes something else except for individuals interacting with their subjective interests and estimates. In this regard, their metaphor “kaleidics” (from “kaleidoscope”) [23, 24] is not a synonym, but a complete antithesis of network, as it implies availability of a special hidden mirror device that creates an instant change of the multi-colored picture.

  5. 5.

    Radical-subjectivist strand of the Austrian Economics considers future unforeseeable. Compared to the common subjectivism of the Austrian school, radical subjectivism does regards market not only as a procedure of discovery (of future) but also as a process of dynamic creation (of future). There are three levels of subjectivism forming the radical-subjectivist stance “First, the subjectivism of wants …Second, the subjectivism of ends and means… Finally, the subjectivism of active minds recognizes that in all aspects of action the active mind may produce interpretations and possibilities the observing economist cannot imagine in advance [39].”

References

  1. Zuboff, S.: The secrets of surveillance capitalism. In: Frankfurter Allgemeine Zeitung. http://www.faz.net/aktuell/feuilleton/debatten/the-digital-debate/shoshana-zuboff-secrets-of-surveillance-capitalism-14103616-9.html?printPagedArticle=tru (2010). Accessed 10 Oct 2016

  2. Zuboff, S.: Creating value in the age of distributed capitalism. In: McKinsey Quarterly. http://www.mckinsey.com/business-functions/strategy-and-corporate-finance/our-insights/creating-value-in-the-age-of-distributed-capitalism. Accessed 10 Oct 2016

  3. Moreno, J.L.: First Book on Group Psychotherapy, 3rd edn. Beacon House, Beacon (1957)

    Google Scholar 

  4. Moreno, J.L.: Who Shall Survive? Foundations of Sociometry, Group Psychotherapy and Sociodrama. Beacon House, Beacon, NY (1953)

    Google Scholar 

  5. Barnes, J.A.: Class and committees in a Norwegian Island Parish. Hum. Relat. 7, 48–49 (1954). http://pierremerckle.fr/wp-content/uploads/2012/03/Barnes.pdf. Accessed 23 Oct 2016

  6. Latour, B.: Une sociologie sans objet? Note théorique sur l’interobjectivité. Sociologie du travail. 36(4), 587–607 (1994)

    Google Scholar 

  7. Hayek, F.A.: Economics and knowledge. A presidential address to the London Economic Club, 10 Nov. 1936. In: Library of Economics and Liberty. http://www.econlib.org/library/NPDBooks/Thirlby/bcthLS3.html (1937). Accessed 23 Oct 2016

  8. Foss, N.J., Klein, P.G.: Alertness, action, and the antecedents of entrepreneurship. J. Priv. Enterp. 25(2), 145–164 (2010)

    Google Scholar 

  9. Klein, P.G.: Opportunity discovery, entrepreneurial action, and economic organization. Strateg. Entrep. J. 2(3), 175–190 (2008)

    Article  Google Scholar 

  10. Lachmann, L.: Capital and its Structure. Sheed, Andrews, & McMeel, Kansas City (1956)

    Google Scholar 

  11. Birner, J.: Introduction. In: Jack Birner, J., Garrouste, P (eds) Markets, Information and Communication. Austrian Perspectives on the Internet Economy, pp. 5–17. Routledge, London, (2004)

    Google Scholar 

  12. Birner J FA Hayek: the radical economist. New York University University, Department of Economics.. http://econ.as.nyu.edu/docs/IO/28047/Birner.pdf. Accessed 20 Oct 2016

  13. Bell, D.: The Coming of Post-Industrial Society: A Venture of Social Forecasting. Basic Books, New York (1973)

    Google Scholar 

  14. Waters, M.: Daniel Bell (Key Sociologists). Routledge, London (1996)

    Google Scholar 

  15. Scott, W.R.: Institutions and Organizations: Ideas and Interests, 3rd edn. Sage Publications, Los Angeles (2008)

    Google Scholar 

  16. Newman, M.E.J.: The physics of networks. Phys. Today. 61(11), 33–38 (2008)

    Article  Google Scholar 

  17. Albert, R., Barabási, A.L.: Statistical mechanics of complex networks. Rev. Mod. Phys. 74, 47–97 (2002)

    Article  ADS  MathSciNet  MATH  Google Scholar 

  18. Wasserman, S., Faust, K.: Social Network Analysis: Methods and Applications. Cambridge University Press, Cambridge (1994)

    Book  MATH  Google Scholar 

  19. Wasserman, S., Robins, G.: An Introduction to random graphs, dependence graphs, and p*. In: Carrington, P., Scott, J., Wasserman, S. (eds) Models and Methods for Social Network Awnalysis, pp. 148–161. Cambridge University Press, Cambridge, New York (2005)

    Google Scholar 

  20. Watts, D.J., Strogatz, S.H.: Collective dynamics of “small-world” networks. Nature. 393, 440–442 (1998)

    Article  ADS  Google Scholar 

  21. Fouler, J.H.: Turnout in a small world. In: Zuckerman, A. (ed) The Social Logic of Politics: Personal Networks as Contexts for Political Behavior, pp. 269–287. Temple University Press, Philadelphia (2005)

    Google Scholar 

  22. Burt, R.: The social capital of structural holes. In: Guillen, M.F., Collins, R., England, P., Meyer, M. (eds) New Directions in Economic Sociology, pp. 201–246. Russel Sage Foundation, New York (2001)

    Google Scholar 

  23. Lachmann, L.M.: From Mises to Shackle: an essay on Austrian economics and the Kaleidic society. J. Econ. Lit. 14, 54–62 (1976)

    Google Scholar 

  24. Wagner, R.E.: Viennese kaleidics: why it’s liberty more than policy that calms turbulence. Rev. Austrian Econ. 25(4), 283–287 (2012). doi:10.1007/s11138-012-0172-x

    Article  Google Scholar 

  25. Barabási, A.L., Réka, A.: Emergence of scaling in random networks. Science. 286, 509–512 (1999)

    Article  ADS  MathSciNet  MATH  Google Scholar 

  26. Granovetter, M.S.: The strength of weak ties. Am. J. Sociol. 78(6), 1360–1380 (1973)

    Article  Google Scholar 

  27. Bourdieu, P: The forms of capital. In: Richardson, J (ed) Handbook of Theory and Research for the Sociology of Education, pp. 241–258. Greenwood Press, New York (1986)

    Google Scholar 

  28. Coleman, J.S. Social capital in the creation of human capital. Am. J. Sociol. 94, S95–S120 (1988). Available via JSTOR. http://www.jstor.org/stable/2780243. Accessed 20 Oct 2016

  29. Peteraf, M.A.: The cornerstones of competitive advantage: A resource-based view. Strateg. Manag. J. 14(3), 179–191 (1993)

    Article  Google Scholar 

  30. Barney, J.B.: Firm resources and sustained competitive advantage. J. Manag. 17(1), 99–120 (1991)

    Google Scholar 

  31. Foss, K., Foss, N.J., Klein, P.G., Klein, S.K.: The entrepreneurial organization of heterogeneous capital. J. Manag. Stud. 44(7), 1165–1186 (2007)

    Article  Google Scholar 

  32. Foss, N.J.: “Austrian” determinants of economic organization in the knowledge economy. In: Birner, J., Garrouste, P. (eds) Markets, Information and Communication. Austrian Perspectives on the Internet Economy, pp. 143–168. Routledge, London (2004)

    Google Scholar 

  33. Chiles, T.H., Tuggle, C.S., McMullen, J.S., Bierman, L., Greening, D.W.: Dynamic creation: extending the radical Austrian approach to entrepreneurship. Organ. Stud. 31(1), 7–46 (2010)

    Article  Google Scholar 

  34. Foss, N.J., Klein, P.G., Kor, Y.Y., Mahoney, J.T.: Entrepreneurship, subjectivism, and the resource-based view: towards a new synthesis. Strateg. Entrep. J. 2(1), 73–94 (2008)

    Article  Google Scholar 

  35. Callon, M., Méadel, C., Rabeharisoa, V.: L’économie des qualities. Politix. 13(52), 211–239 (2000)

    Article  Google Scholar 

  36. Prahalad, C.K., Ramaswamy, V.: The Future of Competition: Co-creating Unique Value with Customers. Harvard Business School Press, Boston (2004)

    Google Scholar 

  37. Porter, M., Kramer, M.: The big idea: creating shared value; how to reinvent capitalism and unleash a wave of innovation and growth. Harv. Bus. Rev. 89(1/2), 62–77 (2011)

    Google Scholar 

  38. Normann, R., Ramírez, R.: From value to value constellation: designing interactive strategy. Harv. Bus. Rev. 71(4), 65–77 (1993)

    Google Scholar 

  39. Koppl, R., Mongiovi, G.: Introduction. In: Koppl, R., Mongiovi, G. (eds) Subjectivism in Economic Analysis: Essays in Memory of Ludwig M, pp. 1–11. Lachmann. Routledge, London (1998)

    Google Scholar 

  40. Barabasi, A.L.: Network Science. Cambridge University Press, Cambridge (2016)

    MATH  Google Scholar 

  41. McCloskey, D.N.: How to buy, sell, make, manage, produce, transact, consume with words. In: Clift, E.M. (ed) How Language is Used to do Business: Essays on the Rhetoric of Economics. Mellen Press, Lewiston (2008)

    Google Scholar 

  42. Polanyi, К.: Our obsolete market mentality: “Civilization must find a new thought pattern”. Commentary. 3(2), 109–118 (1947)

    Google Scholar 

  43. Winch, P.: The Idea of a Social Science and its Relation to Philosophy, 2nd edn. Routledge, London (1990)

    Google Scholar 

  44. Prahalad, C.K.: Ramaswamy V (2004) Co-creating unique value with customers. Strateg. Leadersh. 32(3), 4–9 (2004)

    Article  Google Scholar 

  45. Gibson, J.J.: The theory of affordances. In: Shaw, R., Bransford, J. (eds) Perceiving, Acting, and Knowing, pp. 67–82. Lawrence Erlbaum, Hillsdale (1977)

    Google Scholar 

  46. Gaver, W.W.: Technology affordances. In: Proceedings of the SIGCHI Conference on Human Factors in Computing Systems, New Orleans, LA, USA, April 27–May 2, 1991, pp. 79–84 (1991)

    Google Scholar 

  47. Barabasi, A.L.: Linked: How Everything is Connected to Everything Else and What it Means for Business, Science, and Everyday Life. Basic Book, New York (2004)

    Google Scholar 

Download references

Author information

Authors and Affiliations

  1. Laboratory of Big Data and Problems of Society, National Research Tomsk State University, pr. Lenina 36, 634050, Tomsk, Russia

    Alexey A. Baryshev

Authors
  1. Alexey A. Baryshev
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Alexey A. Baryshev .

Editor information

Editors and Affiliations

  1. Department of Industrial Engineering, Tel Aviv University, Tel Aviv, Israel

    Erez Shmueli

  2. Department of Mathematics, Bar-Ilan University, Ramat-Gan, Israel

    Baruch Barzel

  3. Department of Software and Information Systems Engineering, Ben-Gurion University of the Negev, Beer-Sheva, Israel

    Rami Puzis

Rights and permissions

Reprints and permissions

Copyright information

© 2017 Springer International Publishing AG

About this paper

Cite this paper

Baryshev, A.A. (2017). Towards Network Economics: The Problem of the Network Modus of Value. In: Shmueli, E., Barzel, B., Puzis, R. (eds) 3rd International Winter School and Conference on Network Science . NetSci-X 2017. Springer Proceedings in Complexity. Springer, Cham. https://doi.org/10.1007/978-3-319-55471-6_9

Download citation

Publish with us

Policies and ethics

Search

Navigation