NETI Lab is home to research projects aimed at developing innovative mathematical models and computational tools to better characterize, understand, and anticipate large-scale complex networks and systems.

The evolution of multilayer connections between firms

The web of relationships between companies is essential for markets, as they convey information,  resources and knowledge within a social structure. The embeddedness of firms in these relational structures partly arises from pure business interest and partly from other types of social connections, such as the personal acquaintance of owners or the geographical proximity of companies. Studying the interplay between such relationships can help us to understand the nature of markets and how information flows, reputation and personal connection influence business in general. However, such empirical inquiries are rare at large-scale, because of their significant data-demand.

In this project, we combine administrative datasets on firms to uncover the evolution of inter-firm connections in Hungary between 2016 and 2018. We connect firms through their geographic proximity, co-ownership ties and financial transactions. This multiplex network setting allows us to test how location and co-ownership influence the creation, persistence and dissolution of business transactions directly or indirectly.

Principal Investigator

Related Publications

We work close collaboration with ANET.