The Prize in Economic Sciences 2010 & Social Networks

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The Prize in Economic Sciences 2010 & Social Networks

On October 11, 2010, Posted by , In economics, With 1 Comment

Well, we already have 2010 Nobel Prize in Economics… humm, actually, there's no such thing as a Nobel Prize in Economics!. Alfred Nobel, who I have to say, gives his name to the street I live in, didn't thought of that scientific sphere. It was the Swedish Central Bank which founded The Sveriges Riskbank Prize in Economic Sciences in Memory of Alfred Nobel in 1968.

And the Prize goes to: Peter A. Diamond (MIT), Dale, T. Mortensen (Northwestern Univ.), and Christopher A. Pissarides (LSE), 'for their analysis of markets with search frictions'. See full details here.

The core of the analysis all three economic researchers is what is called the 'search theory'. Frictions cause sellers and buyers have difficulties for finding each other; the search uses time and resources, and frictions imply, for instance, unemployment exist in the labour market, or stocks in the goods maket are unsold for a while.

 

I don't know if you have already reached the conclusion by yourself. Could you imagine the effect social networks have on the market frictions?. Could we think about a betterment in the market conditions through a good network management (i.e. networking)?. Is the spread of web 2.0 tools allowing labour and/or goods/services markets be less stiff?. A quick search on Google Scholar shows us some academic research on it, but I'd like to know your views!!!.