nep-net New Economics Papers
on Network Economics
Issue of 2006‒02‒19
twelve papers chosen by
Yi-Nung Yang
Chung Yuan Christian University

  1. Communication Networks, Hegemony, and Communicative Action By James Tully
  2. Interconnection Negotiations between Telecommunication Networks and Universal Service Objectives By Vasiliki Skreta
  3. Electricity Network Scenarios for Great Britain in 2050 By Ian Elders; Graham Ault; Stuart Galloway; James McDonald; Jonathan Köhler; Matthew Leach; Efterpi Lampaditou
  4. Do Entry Conditions Vary over Time? Entry and Competition in the Broadband Market: 1999-2003 By Xiao, Mo; Orazem, Peter
  5. Designing and Evaluating Sustainable Logistics Networks By Quariguasi Frota Neto, J.; Bloemhof-Ruwaard, J.M.; Nunen, J.A.E.E. van; Heck, E. van
  7. Incentive Regulation in Theory and Practice: Electricity Distribution and Transmission Networks By Paul L Joskow
  8. Smart Business Networks Design and Business Genetics By Pau, L-F.
  9. Regional Labor Markets, Network Externalities and Migration: The Case of German Reunification By Harald Uhlig
  10. The Empirics of Social Capital and Economic Development: A Critical Perspective By Fabio Sabatini
  11. Intra-industry Trade and Production Networks By Toshihiro Okubo
  12. New Electricity Technologies for a Sustainable Future By Tooraj Jamasb; William J. Nuttall; Michael G. Pollitt

  1. By: James Tully
    Abstract: Communicative action now commonly takes place in electronically mediated global networks and the networks are a powerful form of social ordering. This article analyzes the different forms of power that operate in communicative networks and how these alter communicative action. It suggests that the more optimistic literature on global and network governance, arguing and bargaining, and soft norm generation has not taken these new modes of hegemony fully into account. An analysis of the possible forms of communicative freedom in networks rounds off the article.
    Keywords: sovereignty; identity; multilevel governance; Europeanization
    Date: 2005–06–02
  2. By: Vasiliki Skreta
    Date: 2005–01–28
  3. By: Ian Elders; Graham Ault; Stuart Galloway; James McDonald; Jonathan Köhler; Matthew Leach; Efterpi Lampaditou
    Abstract: The next fifty years are likely to see great developments in the technologies deployed in electricity systems, with consequent changes in the structure and operation of power networks. This paper, which forms a chapter in the forthcoming book Future Electricity T echnologies and Systems, develops and presents six possible future electricity industry scenarios for Great Britain, focussed on the year 2050. The paper draws upon discussions of important technologies presented by expert authors in other chapters of the book to consider the impact of different combinations of key influences on the nature of the power system in 2050. For each scenario there is a discussion of the effects of the key parameters, with a description and pictorial illustration. Summary tables identify the role of the technologies presented in other chapters of the book, and list important figures of interest, such as the capacity and energy production of renewable generation technologies.
    Keywords: Energy technology, electricity, sustainable development, environment
    JEL: Q42 Q55 Q56
    Date: 2006–02
  4. By: Xiao, Mo; Orazem, Peter
    Abstract: We extend Bresnahan and Reiss’s (1991) model of local oligopoly to allow firm entry and exit over time. In our framework, entrants have to incur sunk costs in order to enter a market. After becoming incumbents, they disregard these entry costs in deciding whether to continue operating or to exit. We apply this framework to study market structure and competitive conduct in local markets for high-speed Internet service from 1999 to 2003. Replication of Bresnahan and Reiss’s framework generates unreasonable variation in firms’ competitive conduct over time. This variation disappears when entry costs are allowed. We find that once the market has one to three firms, the next entrant has little effect on competitive conduct. We also find that entry costs vary with the order of entry, especially for early entrants. Our findings highlight the importance of sunk costs in determining entry conditions and inferences about firm conduct.
    Keywords: Broadband, High-Speed Internet, Entry, Exit, Competition, Pricing, oligopoly
    JEL: L8
    Date: 2006–02–16
  5. By: Quariguasi Frota Neto, J.; Bloemhof-Ruwaard, J.M.; Nunen, J.A.E.E. van; Heck, E. van (Erasmus Research Institute of Management (ERIM), RSM Erasmus University)
    Abstract: The objective in this paper is to shed light into the design of logistic networks balancing profit and the environment. More specifically we intend to i) determine the main factors influencing environmental performance and costs in logistic networks ii) present a comprehensive framework and mathematical formulation, based on multiobjective programming, integrating all relevant variables in order to explore efficient logistic network configurations iii) present the expected computational results of such formulation and iv) introduce a technique to evaluate the efficiency of existing logistic networks.The European Pulp and Paper Industry will be used to illustrate our findings.
    Keywords: Supply Chain Design;Sustainable Supply Chain;Eco-efficiency;Multi-Objective Programming (MOP);Data Envelopment Analysis (DEA);
    Date: 2006–02–01
  6. By: Dunia López-Pintado (Universidad de Alicante)
    Abstract: This paper studies the problem of spreading a product (an idea or a technology) among agents in a social network. An agent obtains the product with a probability that depends on the spreading rate (or degree of contagion) of the product as well as on the behaviour of the agent?s neighbours. This paper shows, using a mean field approach, that there exists a threshold for the spreading rate that shapes the pattern of the product?s diffusion. This threshold, that depends on the network structure and the mechanism of contagion, determines whether the product spreads and becomes persistent or it does not spread and vanishes.
    Keywords: social networks, diffusion, contagion.
    JEL: C73
    Date: 2004–09
  7. By: Paul L Joskow
    Abstract: Modern theoretical principles to govern the design of incentive regulation mechanisms are reviewed and discussed. General issues associated with applying these principles in practice are identified. Examples of the actual application of incentive r egulation mechanisms to the regulation of prices and service quality for “unbundled” transmission and distribution networks are presented and discussed. Evidence regarding the performance of incentive regulation in practice for electric distribution and transmission networks is reviewed. Issues for future research are identified.
    Keywords: regulation, incentives, networks, electricity, transmission, distribution
    JEL: L94 L51
    Date: 2006–02
  8. By: Pau, L-F. (Erasmus Research Institute of Management (ERIM), RSM Erasmus University)
    Abstract: With the emergence of smart business networks, agile networks, etc. as important research areas in management, for all the attractiveness of these concepts, a major issue remains around their design and the selection rules. While smart business networks should provide advantages due to the quick connect of business partners for selected functions in a process common to several parties, literature does not provide constructive methods whereby the selection of temporary partners and functions can be done. Most discussions only rely solely on human judgment. This paper introduces both computational geometry, and genetic programming, as systematic methods whereby to display possible partnerships, and also whereby to plan for their effect on the organizations or functions of those involved. The two techniques are also been put in the context of emergence theory. Business maps address the first challenge with the use of Vorono? diagrams. Cellular automata, with genetic algorithms mimicking living bodies, address the second challenge. This paper does not include experimental results, which have been derived in the high tech area to determine especially the adequateness of systems integrators to set up joint ventures with smaller technology suppliers.
    Keywords: Smart Business Networks;Design of Smart business Network;Genetics;Cellular Automata;Emergence Theory;Computational Geometry;Vorono?;Smart Business Maps;Business Genetics;Technology Management;
    Date: 2006–02–01
  9. By: Harald Uhlig
    Abstract: Fifteen years after German reunification, the facts about slow regional convergence have born out the prediction of Barro (1991), except that migration out of East Germany has not slowed down. I document that in particular the 18-29 year old are leaving East Germany, and that the emigration has accelerated in recent years. To understand these patterns, I provide an extension of the standard labor search model by allowing for migration and network externalities. In that theory, two equilibria can result: one with a high networking rate, high average labor productivity, low unemployment and no emigration (“West Germany”) and one with a low networking rate, low average labor productivity, high unemployment and a constant rate of emigration (“East Germany”). The model does not imply any obviously sound policies to move from the weakly networked equilibrium to the highly networked equilibrium.
    Keywords: German reunification, labor market search, network externalities, migration, regional economics
    JEL: E20 E24 J6 J1
    Date: 2006–02
  10. By: Fabio Sabatini (University of Rome La Sapienza)
    Abstract: This paper provides an introduction to the concept of social capital, and carries out a critical review of the empirical literature on social capital and economic development. The survey points out six main weaknesses affecting the empirics of social capital. Identified weaknesses are then used to analyze, in a critical perspective, some prominent empirical studies and new interesting researches published in the last two years. The need emerges to acknowledge, also within the empirical research, the multidimensional, context-dependent and dynamic nature of social capital. The survey also underlines that, although it has gained a certain popularity in the empirical research, the use of “indirect” indicators may be misleading. Such measures do not represent social capital’s key components identified by the theoretical literature, and their use causes a considerable confusion about what social capital is, as distinct from its outcomes, and what the relationship between social capital and its outcomes may be. Research reliant upon an outcome of social capital as an indicator of it will necessarily find social capital to be related to that outcome. This paper suggests to focus the empirical research firstly on the “structural” aspects of the concept, therefore excluding by the measurement toolbox all indicators referring to social capital’s supposed outcomes.
    Keywords: Social capital, Social networks, Trust, Economic development, Relation of economics to other disciplines, Relation of economics to social values
    JEL: A12 A13 O10 Z13
    Date: 2006–01
  11. By: Toshihiro Okubo (IUHEI)
    Abstract: This paper examines alternative determinants of intra-industry trade (IIT). Technology transfer via vertical FDI can be an alternative determinant to distance and country-specific factors in gravity equations. Vertical FDI is likely to be made in neighbouring countries in the presence of large gaps in wages and technology. These large gaps lead to foreign direct investment (FDI) and promote technology transfer from headquarters to overseas affiliates. The technology transfer through vertical FDI promotes activities in the overseas affiliates and thus increases re-imports, which can increase IIT.
    Keywords: FDI; Technology Transfer; Wage Gap; Comparative Advantage; Firm Heterogeneity.
    Date: 2004–12
  12. By: Tooraj Jamasb; William J. Nuttall; Michael G. Pollitt
    Abstract: There is a growing concern over our reliance on conventional electricity sources and their long-term environmental, climate change, and security of supply implications, and much hope is vested in the ability of future technological progress to tackle these issues. However, informed academic analysis and policy debates on the future of electricity systems must be based on the current state, and prospects of, technological options. This paper is the introductory chapter in the forthcoming book Future Electricity Technologies and Systems. The book comprises contributions from leading experts in their respective technology areas. The chapters present state of the art and likely progress paths of conventional and new electricity generation, networks, storage, and end-use technologies. In this paper we review the growth trend in electricity demand and carbon emissions. We then present a concise overview of the chapters. Finally, we discuss the main contextual factors that influence long-term technological progress.
    Keywords: Energy technology, electricity, sustainable development, environment
    JEL: Q42 Q55 Q56
    Date: 2006–02

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