Statistical Analysis

1 Measures of centrality

We will be using 3 different measures of centrality in the shiny app: degree, pagerank, and betweenness

1.1 Degree centrality

We will use this in the Corporate Structures modules to identify the most active nodes in the system.

1.2 Pagerank centrality

We will use this measure of centrality to identify the Power Holders. The principle is that the more incoming edges a node has, the more influential it is and nodes to which they are connected share of that influence. (Disney, 2020)

1.3 Betweenness centrality

We will use this measure of centrality to identify the Power Brokers.

Power Brokers must be nodes with both incoming and outgoing edges, so that they can connect a more powerful node to a less powerful node. Hence, having a large number of edges connected to a node is not enough (which the degree centrality offers).

This is because if a node only has incoming or outgoing edges, it won’t be able to connect to other nodes to keep the flow going.