Research on Pyramid Schemes Communication Network Based on Exponential Random Graph Models

As a kind of organized criminal organization, pyramid schemes organization has caused great economic losses to many countries. Social network analysis is a effective methods to study organized crime, and the exponential random graph model is a good tool to study the endogenous structure and network process of the organization. To the best of our knowledge, this work is the first time to use the exponential random graph model to study the communication network of a specific pyramid scheme. Results show that the communication network of pyramid schemes is sparse, and the core staff has less contact with the peripheral staff.