nep-net New Economics Papers
on Network Economics
Issue of 2009‒03‒28
two papers chosen by
Yi-Nung Yang
Chung Yuan Christian University

  1. Pricing in networks By Francis Bloch; Nicolas Quérou
  2. Kosten und Nutzen der Sparsamkeit : zur Erhebung sozialer Netzwerke und sozialer Unterstützungspotentiale in der Umfrageforschung By Sebastian Sattler; Martin Diewald

  1. By: Francis Bloch (Department of Economics, Ecole Polytechnique - CNRS : UMR7176 - Polytechnique - X); Nicolas Quérou (School of Management and Economics - Queen's University of Belfast)
    Abstract: This paper studies optimal pricing in networks in the presence of local consumption or price externalities. It analyzes the relation between prices and nodal centrality measures. Using an asymptotic approach, it shows that the ranking of optimal prices and strategies can be reduced to the lexicographic ranking of a specific vector of nodal characteristics. In particular, this result shows that with positive consumption externalities, prices are higher at nodes with higher degree, and with relative price externalities, prices are higher at nodes which have more neighbors of smaller degree.
    Keywords: Social Networks, Network Externalities, Oligopolies
    Date: 2008–10
  2. By: Sebastian Sattler; Martin Diewald
    Abstract: Measuring ego-centered networks is an especially time-expensive endeavor. However, to be included in multi-thematic surveys, parsimony is needed instead of following a maximizing strategy. Therefore, one pressing questions is, whether and which type of parsimonious data collection produces what losses of information. We address these questions by comparing three different, but closely related operationalizations of ego-centered networks in three different surveys: the German Socio-Economic Panel Study as a multi-thematic large-scale survey, IDUN as a small study designed as a single-purpose instrument to measure egocentered networks in great detail, and the ¿Minipanel¿ as something in between these two. Different setup parameters are the number and type of name generators and descriptors of alteri and a numerical limitation of naming ties. We look specifically whether there are effects on the size of the networks, the composition of networks, and the sociostructural differences with regard to availability of positive aspects of social networks, especially different types of social support. Additionally, we examine the differences between effects of network variables on perceived satisfaction in the surveys. Among others, and above the highly expectable differences in network size, we find an effect of different operationalizations on the network composition. Compared to IDUN, GSOEP produces a considerable overestimation of family ties and a considerable underestimation of relations stemming from school, vocational training and leisure time. We show that specific strategies of parsimony not only lead to losses of information and distortions of network characteristics but can lead in addition to different conclusions about the availability of social capital.
    Keywords: Social networks, network measurement, ego-centered networks, social relations, name generators, social capital, social support
    Date: 2009

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