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Über dieses Buch

fifteen countries in Scandinavia, Europe, Asia, Australia, and U.S.A. All of them came to Stockholm primarily because they recognize the growing im­ portance of networks as complex systems, and their home institutions do not offer any systematic lectures on this topic. The Networks Course was originally initiated jointly by the Summer University of Southern Stockholm Foundation and the County Council of Stockholm, the Swedish Aviation Administration, the Swedish National Road Administration, the Swedish Post, the Swedish State Railways, and Telia AB. They have all served as joint sponsors and hosts for the Course. In the year 1993 the Course also was sponsored by the Swedish Transport and Communications Research Board. All these organizations have supported the publication of a series of key lectures from the Course, to be released as a single volume entitled Networks in Action. It is the ambition of the Foundation to create continuity in its activities for the future. The board has proposed to its principals to take a decision in this direction. It is my expectation that this will be the case for the Networks Course from 1995. This book will then serve as a basic reference for use in an era when the topic of Communication-Networks will be included on a permanent basis in the Summer University's agenda.



Networks Theory


The Theory of Networks

Just about any direction you turn nowadays, the term “network” pops up. So pervasive, in fact, is the idea of a network that it’s actually entered the English language as a verb, as in “networking,” which is used to express the idea of having lots of contacts, friends and colleagues. To get a feel for how the term is used in everyday life, let us briefly look at a few examples of networks.
John L. Casti

Links, Arrows, and Networks: Fundamental Metaphors in Human Thought

In this chapter I develop the thesis that the language of graph and network theory corresponds to some of the most fundamental concepts used in human thought. These concepts are used intuitively by people trying to solve complex problems which involve many relationships between many things. Mathematics enables the intuitive metaphors of links and arrows to be extended in a rigorous way, and allows natural representations of complex systems. I conclude that this mathematics has great potential for those trying to solve ever more complex problems in the physical and social worlds.
Jeffrey Johnson

The Multidimensional Networks of Complex Systems

Two-dimensional networks have been very successful for representing a wide class of problems in the physical and social sciences. The idea that the connectivity of the network constrains the flows on a network can be generalized to a much wider class of complex systems. Multidimensional polyhedra are the analogues of links in networks, and these too have a connectivity through their shared vertices. This combinatorial mathematics underlies a methodology for representing and analyzing very large hierarchical and heterarchical systems, while ensuring compatibility between data at all levels of aggregation. The goal of the methodology is to provide means of analyzing and understanding the dynamic behavior of systems of all degrees of complexity. No prior knowledge of the approach is assumed.
Jeffrey Johnson

Network as Dynamic Systems

The essence of the notion of a network is to represent the idea of connections between entities in space. In general, space does not necessarily correspond to geographical space. Economic networks or social networks could refer to consumers, firms, or ethnic groups where space has an economic or social meaning and where distances might be interpreted in a nongeographical sense. However, the core of the matter is the same—to express the structure of a system in terms of nodes connected by links. The activities associated with the nodes and the flows on the links between nodes is then an expression of the behavior of the system.
Anders Karlqvist

Communication and Human Knowledge


Network Models of Human-Machine Interaction

A simple framework is introduced for considering the elements of human-machine interaction. Use of this framework leads to consideration of network models of equipment; equipment and tasks; and equipment, tasks, and teams. Use of the resulting models as a basis for aiding and training personnel in complex systems is dicussed. Examples considered include display design for helicopter maintenance, intelligent interfaces for aircraft pilots and process control operators, and team training simulators for enhancing ship crew commuinications and coordination.
William B. Rouse

Knowledge Network and Market Structure: An Analytical Perspective

This chapter falls within the category of planning thought in which the stocks of knowledge are regarded as endogenous public goods. Far from being used up in the process of production, we consider that knowledge is made available to firms by way of exchange processes on knowledge networks. Firms may choose to undertake their own R&D activities to expand their own stocks of knowledge, but eventually such stocks become available to other firms at other nodes on the networks. Two analytical frameworks are presented to relate market structure to knowledge accessibility. The model is proposed to investigate the impacts of knowledge spillover on market structure of a nodal economy. This model is extended by explicitly introducing network dimensions to analyze the relationships between nodal division of production and knowledge accessibility on the networks.
Kiyoshi Kobayashi

Economic Models of Knowledge Networks

“Knowledge Networks” is a concept invented and used by contemporary Swedish economists. It appears that international competition has led Swedish industry to focus increasingly on high technology that is perceived as knowledge intensive. To utilize knowledge inputs, close connections are sought between industry and research institutions.
Martin J. Beckmann

Videoconferencing: Economic Arguments on an Overrated Communication Network

For quite some time videoconferences have now been presented as a valuable alternative for business travel. But empirical evidence for a rising market share of this medium is hard to find. Explanations normally refer to the lack of knowledge in firms that hinders them to exploit the competitive advantages that could be gained by the use of this fanciful medium. This reference to irrational behavior is not very appealing, at least to economists. In this chapter, videoconferencing is first considered from a firm’s perspective. A firm decides on its least cost communication strategy by comparing the generalized cost of videoconferencing to the cost related to business travel. It is argued that the cost advantages of business travel are obviously still relevant in most cases. Second, videoconferencing is considered from a market perspective. On this level network externalities exist that hinder a wide use of the new medium. Moreover, regulation and infrastructure policy are further possible reasons for the low competitiveness of videoconferencing.
Rico Maggi

Infrastructure Networks


Overland Transportation Networks: History of Development and Future Prospects

The basic technologies for overland transportation are symbolized by their infrastructures: canals, railways, roads, and airways. They integrate spatially distinct locations into mutually interrelated entities and are structured as networks. Nodes are different locations with interaction potential, such as urban and industrial centers. Links are individual transport infrastructures such as canals, railways, and roads and the related modes e.g., ships, trains, and automobiles. In time, they gradually replace one another; old system are substituted by the new ones. Each individual infrastructure evolves according to a particular scheme, the so-called technology “life cycle.” It starts with an early development phase marked with a high degree of experimentation, develops through a phase of growth characterized by standardization and pervasive diffusion, and eventually enters the last phase of saturation where the technical and economic potentials and thus, further growth prospects are exhausted. This leads to a structural change and transition to the next generation of transport systems.
Nebojša Nakićenović

The Strategic Role of New Infrastructure Networks in Europe

Europe is—after the implementation of the internal market—moving toward an integrated network economy, in which network infrastructure will play a crucial role. Apart from policies oriented toward an adjustment of transport demand or an extension of conventional transport modes, we witness an increasing interest in long-term strategic transport systems development in Europe. Various strategic evaluation criteria for such new European infrastructures will be discussed in this chapter. In addition, a comparative analysis of different new infrastructures (ICE, TGV, Channel Tunnel, etc.) will be given. In particular, attention will be focused on the identification of critical success factors for the implementation of new infrastructure in Europe.
Peter Nijkamp, Adriaan Perrels, Leo Schippers

Europe’s Hierarchical Network Economy

Prior to the eleventh century, Europe was a loosely knit, largely self-sufficient feudal society. Because commerce was embryonic and money a rarity, trade over longer distances was rather small. By the turn of the millennium, however, the picture had changed considerably. All trade had grown substantially with that over medium and longer distances growing most of all. The timing of this sudden expansion of trade coincided with large increases in the urban population.
David F. Batten, Roland Thord

Economic Networks


Networks, Sustainable Differentiation, and Economic Development

An economic network is a constellation of firms linked to each other by partnership arrangements to confer mutual advantages on its participants. It represents an intermediate form of governance between spot transactions on one hand—being the “purest” form of clearing deals in market economies—and full integration within a single firm. In network organizations, firms preserve their identity and are free to operate in the open market, but find it to their advantage to maintain a long-term relationship with their partners, fostering mutual confidence and cooperation. Participants share the risks of specialization, to some extent, while establishing patterns of exchange of information that internalize knowledge and technology transfers within the network. This form of interaction parallels the practice of raising funds through the limited responsibility mechanism, a point to which we shall come back later. In this chapter we aim to understand the fundamental drive behind a network’s formation over the last years, and to explore the rationale and impact of this tendency in the context of managing technical change and sustaining growth.
Ehud Zuscovitch, Moshe Justman

The Dynamics of Economic Networks

Economic organizations of varying complexity have composite internal networks for resource flows and for communication and coordination of production and other activities. The links of such networks function as channels for information exchange and flow of resources. Attached to the internal networks one can identify links which extend beyond the boundaries of each organization (compare Coase12). Those links connect the organization with other economic units. The following presentation shows how these links between firms influence interregional and international trade.
Börje Johansson

Economic Network Synergetics

Economic activities and interdependences can always be modeled on some organizational or spatial network. Such a network consists of nodes (sinks, sources, and saddle points or less specific—economic regions) and trade and transaction links.
Åke E. Andersson


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