nep-net New Economics Papers
on Network Economics
Issue of 2006‒08‒19
three papers chosen by
Yi-Nung Yang
Chung Yuan Christian University

  1. Diffusion on social networks By Jackson, Matthew O.; Yariv, Leeat
  2. Simulating Knowledge-Generation and -Distribution Processes in Innovation Collaborations and Networks By Andreas Pyka; Nigel Gilbert; Petra Ahrweiler
  3. Competing Technologies in the Database Management Systems Market By Tobias Kretschmer

  1. By: Jackson, Matthew O.; Yariv, Leeat
  2. By: Andreas Pyka (University of Augsburg, Department of Economics); Nigel Gilbert (School of Human Sciences, University of Surrey, Guildford, Surrey, GU2 7XH, United Kingdom); Petra Ahrweiler (Research Center Media and Politics, Institute for Political Science, University of Hamburg, Germany)
    Abstract: An agent-based simulation model representing a theory of the dynamic processes involved in innovation in modern knowledge-based industries is described. The agent-based approach al-lows the representation of heterogeneous agents that have individual and varying stocks of knowledge. The simulation is able to model uncertainty, historical change, effect of failure on the agent population, and agent learning from experience, from individual research and from partners and collaborators. The aim of the simulation exercises is to show that the artificial innovation networks show certain characteristics they share with innovation networks in knowledge intensive industries and which are difficult to be integrated in traditional models of industrial economics.
    Keywords: innovation networks, agent-based modelling, scale free networks
    JEL: O31 O32 L22
    Date: 2006–08
  3. By: Tobias Kretschmer
    Abstract: In this paper, we study the dynamics of the market for Database Management Systems(DBMS), which is commonly assumed to possess network effects and where there is stillsome viable competition in our study period, 2000 - 2004. Specifically, we make use of aunique and detailed dataset on several thousand UK firms to study individual organizations'incentives to adopt a particular technology. We find that there are significant internalcomplement effects - in other words, using an operating system and a DBMS from the samevendor seems to confer some complementarities. We also find evidence forcomplementarities between enterprise resource planning systems (ERP) and DBMS and findthat as ERP are frequently specific and customized, DBMS are unlikely to be changed oncethey have been customized to an ERP. We also find that organizations have an increasingtendency to use multiple DBMS on one site, which contradicts the notion that differentDBMS are near-perfect substitutes.
    Keywords: Database software, indirect network effects, technology adoption, microdata
    JEL: L86 O33
    Date: 2006–08

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