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2017

Distributions of Centrality on Networks

Dasaratha, Krishna

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We provide a framework for determining the centralities of agents in a broad family of random networks.

Current understanding of network centrality is largely restricted to deterministic settings, but practitioners frequently use random network models to accommodate data limitations or prove asymptotic results.
Our main theorems show that on large random networks, centrality measures are close to their expected values with high probability.
We illustrate the economic consequences of these results by presenting three applications: (1) In network formation models based on community structure (called stochastic block models), we show network segregation and differences in community size produce inequality.

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——— (2007): “Networks in labor markets: Wage and employment dynamics and inequality,” Journal of Economic Theory , 132, 27–46
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