Title Page, Copyright

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Contents

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pp. v-vi

About the Authors

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pp. vii-x

Acknowledgments

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pp. xi-xii

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1. Introduction: On the Formation and Decay of Interdisciplinary Boundaries

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pp. 1-16

Networks of personal connections are ubiquitous in economic life. Thirty to 60 percent of all new employment relations are estimated to be the result of personal ties (Bewley 1999). Networks are used extensively to raise capital, both by households (for example...

Part I: The Economics Approach

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2. The Study of Social Networks in Economics

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pp. 19-43

As Joel Podolny and James Rauch point out in chapter 1 of this volume, “On the Formation and Decay of Interdisciplinary Boundaries,” social networks are endemic to economic interactions. The rise of what might be called “social economics” comes very much...

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3. The Formation of Industrial-Supply Networks

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pp. 44-76

In the past two decades, the business press in the United States has been full of reports that manufacturers are reducing their supplier base, but until recently there has been no economic theory that can explain this phenomenon. Indeed, it is a puzzle: Why would a manufacturer...

Part II: The Sociology Approach

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4. The Formation of Inter-Organizational Networks

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pp. 79-99

In this chapter I will offer a literature review and some thoughts on processes that may systematically account for the formation networks among economic actors. After reviewing why sociologists (and, increasingly, economists) see networks as essential to the...

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5. Closure and Stability—Persistent Reputation and Enduring Relations Among Bankers and Analysts

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pp. 100-144

As the network around a set of people closes, it creates a competitive advantage known as social capital. The gist of the argument—found in economics (Tullock 1985; Greif 1989), political science (Putnam 1993, 2000), and sociology (Coleman 1988, 1990; Granovetter...

Part III: Melding the Economics and Sociology Approaches

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6. On Firmer Ground: The Collaborative Team as Strategic Research Site for Verifying Network-Based Social-Capital Hypotheses

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pp. 147-182

Social networks command the interest of scholars and others because these relational patterns are assumed to have causal force. In particular, network theories typically adopt the premise that such patterns often lead to individual or collective outcomes that cannot...

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7. Network Decay in Traditional Economies

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pp. 183-209

Community-based networks serve many roles in a traditional economy. In India, the setting of this study, rural caste networks have provided mutual insurance and credit to their members for centuries. More recently, these networks have been transplanted to the...

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8. Clusters and Bridges in Networks of Entrepreneurs

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pp. 210-236

The predominant sociological approach to formation of economic networks focuses on past interaction: people get to know and trust each other, especially in social settings (“embeddedness”), and are then able to share information and do business together. Economists...

Index

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pp. 237-244