Please use this identifier to cite or link to this item:
Title: Exploring impact : negative effects of social networks
Authors: Egbert, Henrik
Sedlarski, Teodor
Keywords: Social networks
Transaction costs
Issue Date: 2011
Publisher: ISMASYSTEMS Scientific Research
Citation: Egbert, H., & Sedlarski, T. (2011). Exploring impact: negative effects of social networks. International Journal of Finance, Insurance and Risk Management, 1(2), 80-86.
Abstract: The sociological literature on social networks emphasizes by and large positive network effects. Negative effects of such networks are discussed rather rarely. This paper tackles negative effects by applying economic theory, particularly neoclassical theory, new institutional theory and the results from experimental economics to the concept of social networks. In the paper it is assumed that social networks are exclusive and since exclusiveness affects the allocation of resources, negative external effects may occur. The argument of the paper is that it is not only advantages for network members that need to be investigated but also the disadvantages for non-network members. The results have two implications. The first one is for economic policy, which often fosters social networking while ignoring their negative externalities. The second one is for network research that can benefit from a more rigorous application of economic theories.
Appears in Collections:Volume 1, Issue 2, 2011

Files in This Item:
File Description SizeFormat 
Exploring_impact.pdf457 kBAdobe PDFView/Open

Items in OAR@UM are protected by copyright, with all rights reserved, unless otherwise indicated.