Mathematically Modelling Collusion

Published by patrick honner on

This is a fascinating application of graph and network theory:  modelling corporate inter-connectedness and measuring the influence of large corporations around the world:

A team of complex systems analysts created a map of how 40,000 transnational companies are connected to each other.  Using quantitative factors (like amount of shares of company X held by company Y, and the economic relative strength of company X), the team developed a way to measure the influence a company exerts over another.

In addition to looking at individual companies, this measurement for the evaluation of the system as a whole in terms of equity and stability.  The team found that a sub-network of 147 tightly knit companies exerted a disproportionate influence over the entire network.  The high level of interconnectedness of this group concentrated power in the network, allowing this small group of less than 1% of the companies to effectively control 40% of the network.

An innovative application of mathematics to the fields of economics, politics, and social justice!

Categories: Application

patrick honner

Math teacher in Brooklyn, New York


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