MGCR 222 Lecture Notes - Lecture 4: Bucket Brigade, Imperfect Competition, Social Capital
Document Summary
Lecture 4: links between formal structure and informal social. If (cid:449)e desig(cid:374) orga(cid:374)izatio(cid:374)s i(cid:374) parti(cid:272)ular (cid:449)ays, (cid:449)e"re (cid:373)ore likely to see (cid:272)ertai(cid:374) relationships/properties: linear network, telephone tree, military companies: Social networks and information benefits: the goal is to maximize the number of non-redundant ties, there are two types of redundant ties, redundancy by cohesion (direct), redundancy by structural equivalence (indirect): Individuals who have connections to a variety of (network) clusters rather than many connections within a single network are positioned to: access relevant information much sooner, can act more quickly on that information. Individuals can exercise influence (control) by facilitating an exchange between two actors who: do (cid:374)ot k(cid:374)o(cid:449) a(cid:271)out ea(cid:272)h other"s (cid:374)eeds a(cid:374)d resour(cid:272)es, do not trust each other to exchange directly. The social structure of competition reading notes: the market production equation predicts profit invested capital multiplied by the going rate of return equals the profit to be expected from the investment.
