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The study of network formation is pervasive in economics, sociology, and many other fields. In this paper, we model network formation as a choice that is made by nodes in a network to connect to other nodes. We study these choices using discrete-choice models, in which an agent chooses between two or more discrete alternatives. One framework for studying network formation is the multinomial logit (MNL) model. We highlight limitations of the MNL model on networks that are constructed from empirical data. We employ the repeated choice (RC) model to study network formation cite{TrainRevelt97mixedlogit}. We argue that the RC model overcomes important limitations of the MNL model and is well-suited to study network formation. We also illustrate how to use the RC model to accurately study network formation using both synthetic and real-world networks. Using synthetic networks, we also compare the performance of the MNL model and the RC model; we find that the RC model estimates the data-generation process of our synthetic networks more accurately than the MNL model. We provide examples of qualitatively interesting questions -- the presence of homophily in a teen friendship network and the fact that new patents are more likely to cite older, more cited, and similar patents -- for which the RC model allows us to achieve insights.
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Network meta-analysis (NMA) is a central tool for evidence synthesis in clinical research. The results of an NMA depend critically on the quality of evidence being pooled. In assessing the validity of an NMA, it is therefore important to know the proportion contributions of each direct treatment comparison to each network treatment effect. The construction of proportion contributions is based on the observation that each row of the hat matrix represents a so-called evidence flow network for each treatment comparison. However, the existing algorithm used to calculate these values is associated with ambiguity according to the selection of paths. In this work we present a novel analogy between NMA and random walks. We use this analogy to derive closed-form expressions for the proportion contributions. A random walk on a graph is a stochastic process that describes a succession of random hops between vertices which are connected by an edge. The weight of an edge relates to the probability that the walker moves along that edge. We use the graph representation of NMA to construct the transition matrix for a random walk on the network of evidence. We show that the net number of times a walker crosses each edge of the network is related to the evidence flow network. By then defining a random walk on the directed evidence flow network, we derive analytically the matrix of proportion contributions. The random-walk approach, in addition to being computationally more efficient, has none of the associated ambiguity of the existing algorithm.
Methods for ranking the importance of nodes in a network have a rich history in machine learning and across domains that analyze structured data. Recent work has evaluated these methods though the seed set expansion problem: given a subset $S$ of nodes from a community of interest in an underlying graph, can we reliably identify the rest of the community? We start from the observation that the most widely used techniques for this problem, personalized PageRank and heat kernel methods, operate in the space of landing probabilities of a random walk rooted at the seed set, ranking nodes according to weighted sums of landing probabilities of different length walks. Both schemes, however, lack an a priori relationship to the seed set objective. In this work we develop a principled framework for evaluating ranking methods by studying seed set expansion applied to the stochastic block model. We derive the optimal gradient for separating the landing probabilities of two classes in a stochastic block model, and find, surprisingly, that under reasonable assumptions the gradient is asymptotically equivalent to personalized PageRank for a specific choice of the PageRank parameter $alpha$ that depends on the block model parameters. This connection provides a novel formal motivation for the success of personalized PageRank in seed set expansion and node ranking generally. We use this connection to propose more advanced techniques incorporating higher moments of landing probabilities; our advanced methods exhibit greatly improved performance despite being simple linear classification rules, and are even competitive with belief propagation.
In this paper we consider the problem of pricing multiple differentiated products. This is challenging as a price change in one product, not only changes the demand of that particular product, but also the demand for the other products. To address this problem, customer choice models have recently been introduced as these are capable of describing customer choice behavior across differentiated products. In the present paper the objective is to obtain the revenue-maximizing prices when the customers decision making process is modelled according to a particular customer choice model, namely the mixed logit model. The main advantage of using the mixed logit model, also known as the random coefficients logit model, for this purpose is its flexibility. In the single-product case we establish log-concavity of the optimization problem under certain regularity conditions. In addition, in the multi-product case, we present the results of our extensive numerical experiments. These suggest that the mixed logit model, by taking unobserved customer heterogeneity and flexible substitution patterns into account, can significantly improve the attainable revenue.
The majority of real-world networks are dynamic and extremely large (e.g., Internet Traffic, Twitter, Facebook, ...). To understand the structural behavior of nodes in these large dynamic networks, it may be necessary to model the dynamics of behavioral roles representing the main connectivity patterns over time. In this paper, we propose a dynamic behavioral mixed-membership model (DBMM) that captures the roles of nodes in the graph and how they evolve over time. Unlike other node-centric models, our model is scalable for analyzing large dynamic networks. In addition, DBMM is flexible, parameter-free, has no functional form or parameterization, and is interpretable (identifies explainable patterns). The performance results indicate our approach can be applied to very large networks while the experimental results show that our model uncovers interesting patterns underlying the dynamics of these networks.
Networks represent relationships between entities in many complex systems, spanning from online social interactions to biological cell development and brain connectivity. In many cases, relationships between entities are unambiguously known: are two users friends in a social network? Do two researchers collaborate on a published paper? Do two road segments in a transportation system intersect? These are directly observable in the system in question. In most cases, relationship between nodes are not directly observable and must be inferred: does one gene regulate the expression of another? Do two animals who physically co-locate have a social bond? Who infected whom in a disease outbreak in a population? Existing approaches for inferring networks from data are found across many application domains and use specialized knowledge to infer and measure the quality of inferred network for a specific task or hypothesis. However, current research lacks a rigorous methodology which employs standard statistical validation on inferred models. In this survey, we examine (1) how network representations are constructed from underlying data, (2) the variety of questions and tasks on these representations over several domains, and (3) validation strategies for measuring the inferred networks capability of answering questions on the system of interest.
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