PUB Analyzing Urban Networks Through the Lens of Corporate Networks: A Critical Review. GaWC. B. Derudder, X. Liu

B. Derudder, X. Liu

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This paper provides a critical review of three major empirical models for approximating urban networks based on corporate networks: the ownership linkage model, the interlocking network model, and the two-mode network model. We review the assumptions, implementations, strengths and shortcomings of these models through pedagogic examples. Based on this review, we suggest that (1) there exists a need to synthesize analytical results from different models; (2) calibration approaches are needed to improve the falsifiability of modeling results; and (3) the two-mode network approach seems to be the most promising approach for analyzing urban networks through corporate networks as it is capable of assessing cities and firms simultaneously, as well as modeling the underlying network formation process.

Key words: Corporate networks, ownership linkages, interlocking network model, two-mode networks