Dmitry Berg, Olga Zvereva - Identification Of Autopoietic Communication Patterns In Social And Economic Networks

IDENTIFICATION OF AUTOPOIETIC COMMUNICATION PATTERNS IN SOCIAL AND

ECONOMIC NETWORKS

Dmitry Berg, Professor,

Olga Zvereva, Senior Lecturer

The 4th international conference on Analysis of Images, Social Networks, and Texts, April, 2015, Ekaterinburg

• Communications develop the basis for social and economic system functioning

• A set of economic agent communications forms a network

• One of the most important system characteristic is its ability to reproduce itself (autopoiesis)

• Autopoiesis is realized according to Maturana and Varella’s theory by cycled communications in the closed contour.

• We tried to find such contours (closed paths) in economic and social networks and considered them to form autopoietic patterns in the networks under discussion.

INTRODUCTION

1. RESEARCH GOALS

2. MUNICIPAL ECONOMIC NETWORK1. CONSUMPTION MATRIX

2. NETWORK DIGRAPH, NETWORK INDICES

3. REVEALING OF THE CLOSED PATHS

4. BALANCED CONSUMPTION MATRIX

3. AGENT-BASED MODEL

4. SOCIAL NETWORK 1. NETWORK SOCIOGRAM

2. NETWORK INDICES

5. HYPOTHESES

RESEARCH OUTLINE

• Niklas Luhmann. Social systems. Sketch of the general theory. St. Petersburg: Science. 2007. 668p

• Manuel Castells. The Rise of the Network Society, The Information Age: Economy, Society and Culture, Vol. I. Cambridge, MA; Oxford, UK: Blackwell (1996) (second edition, 2000), 656 р.

• H.R.Maturana, F.J.Varela Autopoiesis and Cognition: The Realization of the Living (Boston Studies in the Philosophy of Science, Vol. 42) Boston: D. Reidel Publishing Company; 1st edition 1980. 171 p

• Leontief V.V. Essays in Economics. Theories, Theorizing, Facts and Policies. Moscow: Politizdat. 1990. 415p.

• L. da F.Costa, F.A. Rodrigues, G. Travieso, P.R. Villas Boas. Characterization of Complex Networks: A Survey of Measurements. Advances in Physics, 56:1 (2007), pp. 167-242.

• Tore Opsahl, Filip Agneessens, John Skvoretz. Node centrality in weighted networks: Generalizing degree and shortest paths. Social Networks 32 (2010), pp. 245–251.

LITERATURE REVIEW

•To observe communications of real economic agents and to receive a formal matrix representation of these communications

•To explore the results of communications in the social network

•Using SNA methods and instruments to find the autopoietic contours in the social network

•To prove with the help of agent-based model that the balance (Leontieff’s equilibrium) exists

•Using SNA methods and instruments to find the autopoietic contours (closed paths) and make the matrix balanced

•To receive the main network characteristics

RESEARCH GOALS

ECONOMIC NETWORK(Enterprise list )

1. agricultural farm (cereal and industrial crops cultivating);

2. meat and dairy farm (meat and dairy production);

3. poultry farm (poultry breeding and egg production);

4. meat processing plant (production of semi-finished goods from meat and poultry);

5. dairy plant (production of dairy goods);

6. bakery (bakery product manufacturing);

7. flour mill (flour production);

8. feed mill (feed production);

9. furniture factory (home and office furniture production);

10. autoservice workshop (car maintenance and repair);

11. trucking company (shipping operations).

INITIAL CONSUMPTION (PAYMENT) MATRIX OF MUNICIPAL ECONOMIC AGENTS

Product volumes Agen

t 1 2 3 4 5 6 7 8 9 10 11 12

1 0 0 0 0 0 0 496000 1340680 0 0 0 0

2 405 0 0 53993 590322 0 0 0 0 0 0 0

3 0 0 0 79100 0 0 0 0 0 0 0 8227

4 0 0 0 0 0 0 0 0 0 0 0 109460

5 0 0 0 0 0 0 0 0 0 0 0 79389

6 0 0 0 0 0 0 0 0 0 0 0 28775

7 0 0 0 0 0 4081 0 0 0 0 0 0

8 0 8726 419318 0 0 0 0 0 0 0 0 0

9 0 0 0 0 0 0 0 0 0 0 0 2352

10 0 0 0 0 0 0 0 0 0 0 33 9000

11 0 0 0 0 0 0 0 0 0 0 0 16280

12 14000 17000 40450 59000 170300 48000 16000 30000 19200 7000 7730 0

ECONOMIC NETWORK(GRAPH)

CLOSED PATHSIN THE ECONOMIC NETWORK

№ Contour Circularity Link Weights Autopoiesis

1 1→8→2→1 yes 1340680+419318+405 yes

2 1→7→6→12→1 yes 496000+4081+27514+ 14000

yes

3 1→8→3→12→1 yes 1340680+419318+8227+ 14000

yes

4 2→4→12→2 yes 53993+109460+17000 yes

5 2→5→12→2 yes 590322+79389+17000 yes

6 3→12→8→3 yes 8227+30000+419318 yes

7 4→12→3→4 yes 109460+40450+79100 yes

8 6→12→7→6 yes 27514+16000+4081 yes

9 11→12→10→11 yes 16280+7000+33 yes

10 12→1→8←12 no 14000+1340680+30000 no

11 12→2→1←12 no 17000+405+14000 no

12 8→2→4→12→3←8 no 8726+53993+109460+40450+419318

no

NETWORK CHARACTERISTICS

• Population (12) is the central node (a star) in the network which integrates separate autopoietic contours in one autopoietic pattern

• This node has the maximum centrality values in the network:– Centrality in-degree is 0,636– Centrality out-degree is 1,0 (connected with all other

agents). – The value of Freeman’s betweeness centrality is

equal to 88,833 (more than 88% of the shortest paths from one agent to another in this network includes the 12th agent).

Balanced Consumption Matrix of Municipal Economic Network

Product consumption Agent 1 2 3 4 5 6 7 8 9 10 11 12

1 0 0 0 0 0 0 1841 10644 0 0 0 0

2 16 0 0 2154 23555 0 0 0 0 0 0 0

3 0 0 0 61452 0 0 0 0 0 0 0 8227

4 0 0 0 0 0 0 0 0 0 0 0 109460

5 0 0 0 0 0 0 0 0 0 0 0 79389

6 0 0 0 0 0 0 0 0 0 0 0 28775

7 0 0 0 0 0 2255 0 0 0 0 0 0

8 0 8725 63558 0 0 0 0 0 0 0 0 0

9 0 0 0 0 0 0 0 0 0 0 0 2352

10 0 0 0 0 0 0 0 0 0 0 26 6974

11 0 0 0 0 0 0 0 0 0 0 0 7756

12 12469 17000 6131 45844 55834 26520 414 61639 2352 7000 7730 0

AGENT-BASED MODEL

SOCIAL NETWORK GRAPH

CLOSED PATHS IN THE SOCIAL NETWORK

№ Contour Circularity Weights (marks) Autopoiesis

1 3→11→4→5→3 yes 10+3+4+2=19 yes

2 3→11→6→5→3 yes 10+3+5+3=21 yes

3 3→11→7→5→3 yes 10+4+41+3=57 yes

4 3→11→12→5→3 yes 10+4+75+3=92 yes5 3→11→4→9→3 yes 10+3+4-5 no6 3→11→6→9→3 yes 10+3+5-5 no

7 3→11→7→9→3 yes 10+3+50-5 no

8 3→11→12→9→3 yes 10+3+58-5 no

9 3←4→5→3 no 4+4+2=10 no

10 3←6→7→9→3 no 5+5+50+9=19 no

11 3←7→11→4→3 no 9+16+3+4=32 no

NETWORK CHARACTERISTICS

• This network is not highly centralized (the Network Centralization Index is only 6,83% in comparison to 77,19% in the economic network).

• As considered to the agents who integrate these contours in one pattern, they are the 9th and 11th ones. As was estimated with the help of UCINET 6.0 the 9th and 11th agents have the maximum values of Freeman’s centrality betweeness (11,943 and 10,167 respectively) in this network.

•There are autopoietic patterns in economic and social networks

•Every pattern is a set of closed circular contours with some corporate elements (nodes/agents). As usual, these “corporate” agents have high values of centrality measures.

•Consumption matrix of an autopoietic pattern is the balanced one and reproduction in this case can be described with the help of Leontief’s intersectoral equilibrium.

•Two technologies are rather useful for social and economic system analysis: SNA for structural properties revealing and agent-based – for dynamic characteristics determining

HYPOTHESES

Thanks for Your Kind Attention