Ankur Mani and Alex 'Sandy' Pentland
How different are the characteristics of societies that are constrained to local interactions in networks, as compared to societies where all interactions happen in organized markets? Among most species and even in modern human societies, exchange, whether of food, information, or labor, naturally tends to occur locally, as encounters happen between nearby individuals in networks. We study how these local exchanges govern the large scale properties of networked societies--stability, welfare, dynamics, and fairness, and how we can use peer-pressure to improve social welfare. Today we have easy availability of "big data" about social and economic interactions. To use this new resource for the betterment of society, we identify the properties of stable exchanges in networked societies, build tools for computing the structure of stable and fair networked societies, and predict how they may respond to policy changes.