  A substantial number of studies have extended the work on universal
properties in physical systems to complex networks in social, biological, and
technological systems. In this paper, we present a complex networks perspective
on interfirm organizational networks by mapping, analyzing and modeling the
spatial structure of a large interfirm competition network across a variety of
sectors and industries within the United States. We propose two micro-dynamic
models that are able to reproduce empirically observed characteristics of
competition networks as a natural outcome of a minimal set of general
mechanisms governing the formation of competition networks. Both models, which
utilize different approaches yet apply common principles to network formation
give comparable results. There is an asymmetry between companies that are
considered competitors, and companies that consider others as their
competitors. All companies only consider a small number of other companies as
competitors; however, there are a few companies that are considered as
competitors by many others. Geographically, the density of corporate
headquarters strongly correlates with local population density, and the
probability two firms are competitors declines with geographic distance. We
construct these properties by growing a corporate network with competitive
links using random incorporations modulated by population density and
geographic distance. Our new analysis, methodology and empirical results are
relevant to various phenomena of social and market behavior, and have
implications to research fields such as economic geography, economic sociology,
and regional economic development.
