Imitation and Heterogeneity Shape the Resilience of Community Currency Networks
Abstract
Community currency networks are made up of individuals and or companies that share some physical or social characteristics and engage in economic transactions using a virtual currency. This paper investigates the structural and dynamic properties of such mutual credit systems through a case study of Sardex, a community currency initiated and mainly operating in Sardinia, Italy. The transaction network is modeled as a directed weighted graph and analyzed through a graph theoretic framework focused on the analysis of strongly connected components, condensed representations, and behavioral connectivity patterns. Emphasis is placed on understanding the evolution of the network's core and peripheral structures over a three year period, with attention to temporal contraction, flow asymmetries, and structural fragmentation depending on different user types. Our findings reveal persistent deviations from degree based null models and suggest the presence of behavioral imitation, specifically, a user preference for more active peers. We further assess the impact of heterogeneous connections between different type of users, which strengthen the network topology and enhance its resilience.