nep-net New Economics Papers
on Network Economics
Issue of 2005‒07‒11
five papers chosen by
Yi-Nung Yang
Chung Yuan Christian University

  1. Ownership Structure of Cable Networks and Competition in Local Access By Duarte Brito; Pedro Pereira
  2. Non Cooperatives Stackelberg Networks By Juan M.C. Larrosa
  3. Death of distance and agglomeration forces of firms in the urban e-economy : an artificial intelligence approach using rough set analysis By Geenhuizen, Marina van; Nijkamp, Peter
  4. Universities as sources of knowledge for innovation.The case of Technology Intensive Firms in Portugal By Joana Costa; Aurora A. C. Teixeira
  5. On the Coexistence of Smuggling and Trafficking in Migrants By Yuji Tamura

  1. By: Duarte Brito (Universidade Nova de Lisboa); Pedro Pereira (Autoridade da Concorrência)
    Abstract: In this paper, we discuss the role of cable television networks and their ownership structure in promoting competition in the local access market. First, we show that the dual ownership of a local telephone network and a cable network, compared with separate ownership, may increase or decrease incentives to invest in upgrading the cable television network. Second, we argue that separate ownership of the two networks is important to promote competition in local access.
    Keywords: Cable Networks, Local Access, Competition
    JEL: L43 L96
    Date: 2005–07–08
  2. By: Juan M.C. Larrosa (CONICET-Universidad Nacional del Sur)
    Abstract: Noncooperative network-formation games in oligopolies analyze optimal connection structures that emerge when linking represent the appropriation of cost-reducing one-way externalities. These models reflect situations where one firm access to another firm’s (public or private) information and this last cannot refuse it. What would happen if decisions are sequential? A model of exogenous Stackelberg leadership is developed and first-mover advantages are observed and commented.
    Keywords: non cooperative games, network formation strategies, Stackelberg equilibrium.
    JEL: C70 D43 L13
    Date: 2005–07–08
  3. By: Geenhuizen, Marina van (Vrije Universiteit Amsterdam, Faculteit der Economische Wetenschappen en Econometrie (Free University Amsterdam, Faculty of Economics Sciences, Business Administration and Economitrics); Nijkamp, Peter
    Abstract: The present study addresses the relevance of geographic proximity for companies in our age of advanced ICT. Many visions of, and speculations on, an increased footlooseness of companies and a concomitant dispersal of urban economic activity have been published in recent years. To identify whether urban agglomeration economies (in particular, knowledge spillovers) are still a key force in preventing such dispersal, we investigate the degree of footlooseness of young, innovative companies. First, we briefly review the traditional theory of agglomeration economies, in particular knowledge spillovers. Next, we connect this theory with more recent resource-dependence views. We then present the results of an empirical analysis of young, innovative companies in various city regions in the Netherlands. The selected innovative sectors are medical biotechnology, ICT services, and mechatronics (optronics), and do not include consumer-oriented activities. The exploratory analysis based on interviews with 21 companies employs an artificial intelligence method, called 'rough set analysis', to increase our understanding of the crucial factors that influence the relevance of physical proximity. On the basis of these results, we argue that agglomeration economies still remain important for various categories of young, innovative firms, even those providing ICT services, but that we need to make a distinction between agglomeration economies that work exclusively in the largest city (i.e. Amsterdam) and agglomeration economies that cover a larger metropolitan area. The only fundamental change in proximity needs among these young, innovative companies originates from a small class of network companies, which are footloose even beyond the larger metropolitan area.
    Keywords: ICT; young and innovative companies; agglomeration economies; proximity; footlooseness; rough set analysis; artificial intelligence
    Date: 2005
  4. By: Joana Costa (Faculdade de Economia, Universidade do Porto); Aurora A. C. Teixeira (CEMPRE, Faculdade de Economia, Universidade do Porto)
    Abstract: Within a debatable framework of ‘natural replication’ of well-succeeded cases such as the Silicon Valley, Route 128, OECD countries have been implementing policy measures directed to the stimulation of the development of regional clusters composed by Technology-Intensive Firms (TIF) around universities believing that this would increase economic returns from public research investment thereby fostering regional economic development. That is because knowledge-based goods and services are highly valuated by consumers and the TIF can increase the rate of innovation in the economy as a whole. Thus, the creation of science parks, the support of business incubators, seed capital, specific supports for the development of joint R&D projects are sponsored by public authorities as an effort to link universities to industrial innovation. This investigation tries an empirical answer to the following questions: 1) Are universities important as source of information and knowledge use for TIF innovation activities?; 2) How relevant are universities for the location decisions of TIF?; Is TIF’s human capital composition a relevant variable for strengthening university-TIF linkages and thus contributing for enhancing regional innovation capabilities? Based on survey data of Portuguese TIF (composed by 425 firms from a total of 728 that reported having performed R&D activities in 2001-2003), and contrasting with Community Innovation Survey (CIS) related evidence, we conclude that university is critical to these firms innovative activities being therefore likely to substantially and positively impact on regional knowledge network flows and density. The evidence collected shows therefore an unequivocal support for public policies measures targeting TIF as innovation leverages and regional boosters.
    Keywords: technology intensive firms, universities linkages, Portugal
    JEL: O31 O32 O38 C25
    Date: 2005–07
  5. By: Yuji Tamura (University of Warwick)
    Abstract: Akerlof's (1970) model of asymmetric information is adapted for the migrant smuggling market where smugglers differ in their capacities to exploit their clients in the destination. Migrants may gain a greater surplus when informationally disadvantaged than under symmetric information, which can be a source of the marketfs prosperity. We show a static equilibrium where both exploitative and non-exploitative smugglers are active is subject to adverse selection in the long run in an environment where migrants trust social networks and distrust exploitative smugglers. We predict the market may converge to a stable state where only exploitative smugglers are active due to the very information transmission through social networks that is commonly used to evade hiring exploitative smugglers. Exploitative and non- exploitative smugglers then coexist only temporarily. Policymakers are likely to face a dilemma of whether to reduce the exploitation of smuggled migrants or the availability of smuggling services, for there seems to be a trade-off between these.
    Keywords: irregular migration, migrant smuggling, migrant trafficking, adverse selection
    JEL: F22 J61 D82 L15 K42
    Date: 2005–07–07

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