Understanding networks with exponential-family random network models

The structure of many complex social networks is determined by nodal and dyadic covariates that are endogenous to the tie variables. While exponential-family random graph models (ERGMs) have been very successful in modeling social networks with exogenous covariates, they are often misspecified for networks where some covariates are stochastic. Exponential-family random network models (ERNMs) are an extension of ERGM that retain the desirable properties of ERGM, but allow the joint modeling of tie variables and covariates. We compare ERGM to ERNM to show how conclusions of ERGM modeling are improved by consideration of the ERNM framework. In particular, ERNM simultaneously represents the effects of social influence and social selection processes, while commonly used models do not.