Čopič, Jernej; Matematični kolokvij marec 2007

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Identifying Community Structures

Jernej Čopič

Cowles Foundation, Yale, ZDA

15. marec 2007

In many economic situations it is of interest to know who interacts with whom. In international trade, for example, some theories predict that members of certain groups will have a higher probability of trading with each other than with those in other groups. Based on a model of within and across group interactions, we describe, characterize, and implement, a new method for identifying trading or community structures from network data. The method is based on maximum likelihood estimation, a standard statistical tool.

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