Toward a Multiplex Network Theory of Interlocal Service Contracting

Abstract

AbstractDebates about risk in interlocal service contracts treat contracts as discrete dyadic exchanges. We challenge this notion by advancing a multiplex network contacting approach, which asserts that interlocal contracting represents a multiplex network phenomenon, defined as overlapping multiple service contract networks. Simultaneous treatment of multiple networks is required to understand how local governments mitigate contract risks. We claim that local governments create multiplex network structures comprising more than one service contract networks in order to reduce service contracting risks. Multivariate exponential random graph models were fit to joint high‐risk and low or mixed‐risk contract networks involving eight local government services in Pinellas County, Florida. The results demonstrate that local governments mitigate risk by creating multiplex reciprocity and multiplex network closure in contracts that involve multiple services.