Intermediate Levels of Network Fluidity Amplify Economic Growth and Mitigate Economic Inequality in Experimental Social Networks

Abstract

Social connections are mutable. Prior experimental work has shown that circumstances fostering an intermediate rate of forming and breaking social ties ("network fluidity") facilitate the maintenance of optimal levels of cooperation in experimental social networks. Previous observational work has also suggested a relationship between economic outcomes and network structure (measured statically) at a geographic level. However, it is not known how network fluidity might affect economic growth and inequality, particularly in an experimental setting. Using data from a series of online experiments involving a public goods game in 90 independent, dynamic social networks (with N=1,529 subjects), we show that increasing network fluidity simultaneously achieves the highest level of economic growth and the lowest level of economic inequality, up to a point. These effects of network fluidity on economic outcomes are mediated, in these experiments, by the levels of cooperation and tie formation that subjects evince. Finally, we show that wealthier networks are less unequal. Social network fluidity may play an important role in economic outcomes and hence in social welfare.

The emergence of inequality in social groups: Network structure and institutions affect the distribution of earnings in cooperation games

“…The results are significant in the PAGE05 experiment with punishment and in the WANG12 experiments starting from clique networks and varying the level of rewiring. These results were also found in another published study that investigated the effect of strategic network updating on inequality [ 47 ]. Based on the data we analyze here, 14 out of the 20 control-treatment differences show higher inequality for fixed networks compared to networks with strategic updating.…”

“…The sign test is marginally not significant at the 0.05 level (Binomial test, 1-sided p = 0.058). However, adding the results from [ 47 ], for which we did not have raw data, gives us 22 out of 28 and stronger statistical evidence overall (Binomial test, 1-sided p = 0.002).…”

The role of social network support in treatment outcomes for medication for opioid use disorder: A systematic review

“…Novel treatment paradigms, such as open access models, have gone a long way in decreasing barriers to treatment and improving engagement, but there is still unexplained variability in patient engagement and therefore an opportunity for improvement [18]. Social network support moderates outcomes as diverse as cooperation and economic inequality [19,20]. Observational and experimental studies have shown that phenomena as diverse as cooperation, obesity, drug use, smoking, alcohol use, and other health behaviors may be associated with social networks [21,22,23,24].…”

The role of social network support on treatment outcomes for medication for opioid use disorder: a systematic review protocol

“…Social network support moderates outcomes as diverse as cooperation and economic inequality [19,20]. Observational and experimental studies have shown that phenomena as diverse as cooperation, obesity, drug use, smoking, alcohol use, and other health behaviors may be associated with social networks [21,22,23,24].…”