nep-net New Economics Papers
on Network Economics
Issue of 2005‒03‒20
six papers chosen by
Yi-Nung Yang
Chung Yuan Christian University

  1. Who's Who in Networks. Wanted: the Key Player By Coralio Ballester; Antoni Calvo-Armengol; Yves Zenou
  2. Intellectual Property and Inter-organizational Collaborative Networks: Navigating the Maze By Puay Tang; Jordi Molas-Gallart
  3. China's Innovation System Reform and Growing Industry and Science Linkages By Kazuyuki Motohashi; Xiao Yun
  4. Models of supply functions competition with application to the network auctions By Vasin Alexander; Vasina Polina
  6. Product entry in a fast growing industry: the LAN switch market By Roberto Fontana; Lionel Nesta

  1. By: Coralio Ballester; Antoni Calvo-Armengol; Yves Zenou
    Date: 2005–03–10
  2. By: Puay Tang (SPRU, University of Sussex); Jordi Molas-Gallart (SPRU, University of Sussex)
    Abstract: Intellectual Property (IP) is a key intangible asset influencing corporate performance and its management is increasingly recognized as a central element of corporate strategy. This article is concerned with the management of IP in inter-firm collaborative projects mediated through the use of advanced IT tools. Here, groups of firms, often competitors, and sometimes their customer organizations, collaborate in the design, development, manufacture and maintenance of complex products, exchanging large amounts of proprietary technical data through IT tools. How can organizations exploit the capabilities offered by these tools without increasing the vulnerability of IP assets to misappropriation, unauthorized use or leakage? We explore the case of the UK defence market, where an extensive set of formal contractual tools is being developed to support IP management in collaborative projects. Through an in-depth study of IP management practice in UK defence projects we analyse the extent to which contractual tools can combine with technical solutions to provide answers to the problems posed by IP management in complex, long-term collaborative projects. We conclude that contractual and technical tools must be underpinned by managerial changes bringing together functions that remain separated in most large corporations: Information Technology management, legal and commercial departments.
    Keywords: Intellectual Property management; Information Technology; Shared Data Environments; inter-organisational networks; defence sector; collaborative projects. IPR
    JEL: O34 L86
    Date: 2005–02–01
  3. By: Kazuyuki Motohashi; Xiao Yun
    Abstract: In this paper, linkages of S&T activities between industry and science are investigated in the context of innovation system reforms. A firm level dataset from S&T survey at National Bureau of Statistics (NBS) of PRC for about 22,000 manufacturing firms is used for econometrics analysis of firm's S&T outsourcing activities. In transition period of China's innovation system from 1996 to 2002, firm's S&T outsourcing activities have been increased significantly. In addition, positive association between basic research oriented firms and collaboration with science sector can be found. China's innovation system was suffered from Russian model, where S&T activities at public research institutes and production activities at state owned enterprises are completely separated. However, in transition period of innovation system reform toward network type one, we can find that some firms have gained their technological capability to collaborate with universities and PRIs.
    Date: 2005–03
  4. By: Vasin Alexander; Vasina Polina
    Abstract: This paper studies different auctions of supply functions in a local market and a simple network market of a homogeneous good with two nodes and a fixed transmission loss per unit of the good. We study problems of existence, uniqueness and computation of Nash equilibria for these models. We also obtain the estimate of Nash equilibria deviation from the Walrasian equilibrium for each variant. We consider the problem of optimal auction organization from the point of view of the social welfare maximization.
    Keywords: Russia, supply function auction, Cournot, Vickrey, Russian electricity market
    JEL: D44
    Date: 2005–03–01
  5. By: John S. Earle; Klara Sabirianova Peter
    Abstract: We present a model of neighborhood effects in wage payment delays. Positive feedback arises because each employer’s arrears affect the late payment costs faced by other firms in the same local labor market, resulting in a strategic complementarity in the practice. The model is estimated on panel data for workers and firms in Russia, facilitating identification through the use of a rich set of covariates and fixed effects for employees, employers, and local labor markets. We also exploit a policy intervention affecting public sector workers that provides an instrumental variable to estimate the endogenous reaction in the non-public sector. Consistently across specifications, the estimated reaction function displays strongly positive neighborhood effects, and the estimates of four feedback loops – operating through worker quits, effort, strikes, and legal penalties – imply that costs of delays are attenuated by neighborhood arrears. We also study a nonlinear case exhibiting two stable equilibria: a “punctual payment equilibrium” and a “late payment equilibrium.” The estimates imply that the theoretical conditions for multiple equilibria under symmetric local labor market competition are satisfied in our data.
    Keywords: wage arrears, contract violation, neighborhood effect, social interactions, multiple equilibria, network externality, strategic complementarity, transition, Russia.
    JEL: A12 B52 J30 K42 L14 O17 P31 P37
    Date: 2004–07–01
  6. By: Roberto Fontana (CESPRI, Bocconi University, Milan); Lionel Nesta (SPRU, University of Sussex)
    Abstract: We provide empirical evidence on market positioning by firms, in terms of market niche, distance from technological frontier and dispersion. We focus on the switch industry, a sub-market of the Local Area Network industry, in the nineties. Market positioning is a function of the type of firms (incumbents versus entrants), market size and contestability and firm competencies. We find that incumbents specialise in high-end segments and disperse their product in a larger spectrum of the market. Instead, entrants focus on specific market niches. Market size, market contestability and firm competencies are also important determinants of product location.
    Keywords: switch industry, markets, competition, firm capabilities, product entry
    JEL: L11 L63
    Date: 2004–10–10

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