nep-net New Economics Papers
on Network Economics
Issue of 2008‒06‒13
six papers chosen by
Yi-Nung Yang
Chung Yuan Christian University

  1. Heterodox Economics and Dissemination of Research through the Internet: the Experience of RePEc and NEP By Marco Novarese; Christian Zimmermann
  2. Software Marketing on the Internet: the Use of Samples and Repositories By Alexia Gaudeul
  3. An Agent Based Simulation Of Smart Metering Technology Adoption By Zhang, T.; Nuttall, W.J.
  4. "Supplier Networks and Aircraft Production@in Wartime Japan" By Tetsuji Okazaki
  5. Peer Effects and Peer Avoidance: Epidemic Diffusion in Coevolving Networks By Constanza Fosca; Matteo Marsili; Fernando Vega-Redondo
  6. Sorting and Decentralized Price Competition By Jan Eeckhout; Philipp Kircher

  1. By: Marco Novarese (Universita del Piemonte Orientale); Christian Zimmermann (University of Connecticut)
    Abstract: We study how the democratization of the diffusion of research through the Internet could have helped non traditional fields of research. The specific case we approach is Heterodox Economics as its pre-prints are disseminated through NEP, the email alert service of RePEc. Comparing heterodox and mainstream papers, we find that heterodox ones are quite systematically more downloaded, and particularly so when considering downloads per subscriber. We conclude that the Internet definitely helps heterodox research, also because other researcher get exposed to it. But there is still room for more participation by heterodox researchers.
    Keywords: NEP, RePEc, heterodox economics, diffusion of research
    JEL: B50 A14
    Date: 2008–05
  2. By: Alexia Gaudeul (Centre for Competition Policy, University of East Anglia)
    Abstract: This paper examines one of the most important marketing strategies by software producers on the Internet. That is whether to offer free samples and if so, whether to list the samples on shareware repositories. I show that firms with higher value products have a greater incentive to offer free samples but are more reluctant to do so if they are well known, and even when they do are less likely to be listed on shareware repositories. I then proceed to use four types of Probit-based models to corroborate the findings from the theoretical model.
    Keywords: Shareware; Software; Internet; Distribution; Intermediation; Directory; Repository; Advertising; Brand; Reputation; Asymmetric Information; Search; Sample.
    JEL: D42 D43 D82 D83 L13 L15 L81 L86
    Date: 2008–06
  3. By: Zhang, T.; Nuttall, W.J.
    Abstract: Based on the classic behavioural theory “the Theory of Planned Behaviour”, we develop an agent-based model to simulate the diffusion of smart metering technology in the electricity market. We simulate the emergent adoption of smart metering technology under different management strategies and economic regulations. Our research results show that in terms of boosting the take-off of smart meters in the electricity market, choosing the initial users on a random and geographically dispersed basis and encouraging meter competition between energy suppliers can be two very effective strategies. We also observe an “S-curve” diffusion of smart metering technology and a “lock-in” effect in the model. The research results provide us with insights as to effective policies and strategies for the roll-out of smart metering technology in the electricity market.
    Keywords: Agent-based simulation, smart metering technology, the Theory of Planned Behaviour, technology diffusion.
    JEL: C63 C73 D78 O33
    Date: 2007–09
  4. By: Tetsuji Okazaki (Faculty of Economics, University of Tokyo)
    Abstract: The Japanese aircraft industry, which had been in a very small scale before the Second World War, became the largest manufacturing industry at the end of the War. In this paper, we explored the basis of the growth of the aircraft industry during the war, focusing on No.5 Works of Mitsubishi Heavy Industries Co.. It was made clear that the supply of basic inputs sharply increased. Labor force and "machinery parts" were sufficiently supplied and either of them was not a binding constraint of production. The binding constraint was given by supply of "special parts." To put it differently, expansion of aircraft production was realized, as the supply of "special parts" increased. Increase of "special parts" supply and still faster increase of "machinery parts" supply were achieved thorough expansion of supplier network both in terms of number of suppliers and the geographical area they were located.
    Date: 2008–06
  5. By: Constanza Fosca; Matteo Marsili; Fernando Vega-Redondo
    Abstract: We study the long-run-emergency of behavioral patterns in dynamic complex networks. Individuals display two kinds of behavior: G("good") or B ("bad"). We assume that agents have an innate tendency towards G, but can also be led towards B though the influence of peer bad behavior. We model the implications of those peer effects as an epidemic process in the standard SIS (Susceptible-Infected-Susceptible) framework. The key novelty of our model is that, unlike in received epidemic literature, the network is taken to change over time within the same time scale as behavior. Specifically, we posit that links connecting two G agents last longer, reflecting the idea that B agents tend to be avoided. The main concern of the paper is to understand the extent to which such biased network turnover may play a significant role in supporting G behavior in a social system. And indeed we find that network coevolution has nontrivial and interesting effects on long-run behavior. This yields fresh insights on the role of (endogenous) peer pressure on the diffusion of (a)social behavior as well as on the traditional study of disease epidemics.
    Keywords: Coevolutionary networks, diffusion of behavior, social dilemma, epidemics
    JEL: C71 D83 D85
    Date: 2008
  6. By: Jan Eeckhout (Department of Economics, University of Pennsylvania); Philipp Kircher (Department of Economics, University of Pennsylvania)
    Abstract: We investigate under which conditions price competition in a market with matching frictions leads to sorting of buyers and sellers. Positive assortative matching obtains only if there is a high enough degree of complementarity between buyer and seller types. The relevant condition is root-supermodularity; i.e., the square root of the match value function is supermodular. It is a necessary and sufficient condition for positive assortative matching under any distribution of buyer and seller types, and does not depend on the details of the underlying matching function that describes the search process. The condition is weaker than log-supermodularity, a condition required for positive assortative matching in markets with random search. This highlights the role competition plays in matching heterogeneous agents. Negative assortative matching obtains whenever the match value function is weakly submodular.
    Keywords: Competitive Search Equilibrium. Directed Search. Two-Sided Matching. Decentralized Price Competition. Root-Supermodularity.
    JEL: J64 C78 D83
    Date: 2008–05–01

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