Spontaneous centralization of control in a network of company ownerships

Sebastian M. Krause, Tiago P. Peixoto, Stefan Bornholdt

Research output: Contribution to journalArticle

1 Citation (Scopus)

Abstract

We introduce a model for the adaptive evolution of a network of company ownerships. In a recent work it has been shown that the empirical global network of corporate control is marked by a central, tightly connected "core" made of a small number of large companies which control a significant part of the global economy. Here we show how a simple, adaptive "rich get richer" dynamics can account for this characteristic, which incorporates the increased buying power of more influential companies, and in turn results in even higher control. We conclude that this kind of centralized structure can emerge without it being an explicit goal of these companies, or as a result of a well-organized strategy.
Original languageEnglish
Article numbere80303
JournalPLoS ONE
Volume8
Issue number12
DOIs
Publication statusPublished - 6 Dec 2013

Keywords

  • Computer Science - Social and Information Networks, Physics - Physics and Society, Quantitative Finance - General Finance

Fingerprint Dive into the research topics of 'Spontaneous centralization of control in a network of company ownerships'. Together they form a unique fingerprint.

  • Cite this