Networks also have a tendency towards clustering, meaning groups of people that are densely interconnected with each other. In network terminology this is known as the principle of closure. The intuition here is that if you are strongly tied to two contacts, those contacts are likely to form a relationship with each other as well, resulting in a “closed” triad. Closure occurs because of the increased opportunity for contacts that interact with you frequently to meet, interact, and learn about each other. Closure also makes it easier and more efficient for you to maintain your relationships with two contacts. And, closure can result from your endorsing contacts to each other. The graphs below report the degree to which the contacts in YOUR NETWORK (p. 4) are embedded in closed triads.
Benefits
Since the flow of information is rapid and efficient in closed networks, coordinating activities and calibrating expectations among the members of such densely interconnected clusters is facilitated. As a result, closed networks have an enhanced capacity to establish strong social norms and foster trust among its members. Reputations also take on heightened value in a closed network, which allow its members to enlist cooperation from each other.
Tradeoffs
Closed networks also have the potential to fuel gossip, be exclusionary, and therefore insular to the input of those outside the cluster. Inside the cluster, closure can also be constraining since the social norms often involve reciprocating, assisting others, and deferring private gain for collective well-being.