nep-net New Economics Papers
on Network Economics
Issue of 2008‒09‒13
four papers chosen by
Yi-Nung Yang
Chung Yuan Christian University

  1. Networks with Group Counterproposals By Ricardo Nieva
  2. Personality on Social Network Sites: An Application of the Five Factor Model By Stefan Wehrli
  3. A Network Model of Price Dispersion By Giacomo Pasini; Paolo Pin; Simon Weidenholzer
  4. Does Network Matter in International Expansion? Evidence from Italian SMEs By Antonia Rosa Gurrieri; Luca Petruzzellis

  1. By: Ricardo Nieva (University of Minnesota)
    Abstract: We study two n-player sequential network formation games with externalities. Link formation is tied to simultaneous transfer selection in a Nash demand like game in each period. Players in groups can counterpropose. We give necessary and sufficient conditions for efficiency in terms of cyclical monotonicity. The n-player group version always yields efficiency.
    Keywords: Efficiency, Bargaining Protocol, Counterproposals, Network Formation, Transfers, Externalities, Groups, Coalitions
    JEL: C71 C72 C73 C78
    Date: 2008–07
  2. By: Stefan Wehrli
    Abstract: In this paper we explore how individual personality characteristics influence online social networking behavior. We use data from an online survey with 1560 respondents from a major Swiss technical university and their corresponding online profiles and friendship networks on a popular Social Network Site (SNS). Apart from sociodemographic variables and questions about SNS usage, we collected survey data on personality traits with a short question inventory of the Five Factor Personality Model (BFI-15). We show how these psychological network antecedents influence participation, adoption time, nodal degree and ego-network growth over a period of 4 months on the networking platform. Statistical analysis with overdispersed degree distribution models identifies extraversion as a major driving force in the tie formation process. We find a counter-intuitive positive effect for neuroticism, a negative influence for conscientiousness and no effects for openness and agreeableness.
    Keywords: online social networks, personality, Big Five, degree distribution
    JEL: D85
    Date: 2008–09–05
  3. By: Giacomo Pasini (Ca' Foscari University in Venice); Paolo Pin (Abdus Salam Internazional Centre for Theoretical Physics); Simon Weidenholzer (Institut für Volkswirtschaftslehre, Universität Wien)
    Abstract: We analyze a model of price competition ? la Bertrand in a network environment. Firms only have a limited information on the structure of network: they know the number of potential customers they can attract and the degree distribution of customers. This incomplete information framework stimulates the use of Bayesian-Nash equilibrium. We find that, if there are customers only linked to one firm, but not all of them are, then an equilibrium in randomized strategies fails to exist. Instead, we find a symmetric equilibrium in randomized strategies. Finally, we test our results on US gasoline data. We find empirical evidence consistent with firms playing random strategies.
    Keywords: Bertrand Competition, Bayesian- Nash Equilibrium, Mobility Index
    JEL: D43 D85 L11
    Date: 2008–03
  4. By: Antonia Rosa Gurrieri (University of Foggia); Luca Petruzzellis (University of Bari)
    Abstract: In order to face the new competitive scenario, Apulian textile firms are involved in a process of change and are trying to adopt a networking approach in analysing the international propensity of SMEs. The case of the textile network in Apulia has been analysed using a semi-structured questionnaire submitted to a sample of family businesses in order to verify the influence of network on their internationalisation process. The contribution that the network can give to the single firm in its internationalisation process depends also on the level of cooperation in the network. In fact, relationships – at least dual vertical relationships – are the key to overcoming size limit and providing value to all the partners involved. The research attempted to offer a better academic understanding of the role of network in international competitive advantage. Future research should be based on cross countries analysis, in order to determine whether or not the set of internal determinants of internationalisation pensity remain stable from one country to another. The findings should also be useful to local governance for a better understanding of the network phenomenon in order to develop appropriate programmes for training and supporting SMEs in the global market. This paper provides a wide analysis of the network role in the internationalisation process in a low technology sector.
    Keywords: Internationalisation Strategies, Network Approach
    JEL: L2 D85
    Date: 2008–07

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