nep-net New Economics Papers
on Network Economics
Issue of 2009‒04‒05
four papers chosen by
Yi-Nung Yang
Chung Yuan Christian University

  1. Contractually stable networks By CAULIER, Jean-Franois; MAULEON, Ana; VANNETELBOSCH, Vincent
  2. Simplistic vs. Complex Organization: Markets, Hierarchies, and Networks in an 'Organizational Triangle' By Elsner, Wolfram; Hocker, Gero; Schwardt, Henning
  3. Assessing the influence of R&D institutions by mapping international scientific networks: the case of INESC Porto By José Sequeira; Aurora A.C. Teixeira
  4. Determinants of the international influence of a R&D organisation: a bibliometric approach By Aurora A.C. Teixeira; José Sequeira

  1. By: CAULIER, Jean-Franois; MAULEON, Ana (UniversitŽ catholique de Louvain (UCL). Center for Operations Research and Econometrics (CORE)); VANNETELBOSCH, Vincent (UniversitŽ catholique de Louvain (UCL). Center for Operations Research and Econometrics (CORE))
    Abstract: We develop a theoretical framework that allows us to study which bilateral links and coalition structures are going to emerge at equilibrium. We define the notion of coalitional network to represent a network and a coalition structure, where the network specifies the nature of the relationship each individual has with his coalition members and with individuals outside his coalition. To predict the coalitional networks that are going to emerge at equilibrium we propose the concept of contractual stability which requires that any change made to the coalitional network needs the consent of both the deviating players and their original coalition partners. We show that there always exists a contractually stable coalitional network under the simple majority decision rule and the component-wise egalitarian or majoritarian allocation rules. Moreover, requiring the consent of group members may help to reconcile stability and efficiency.
    Keywords: networks, coalition structures, contractual stability, allocation rules.
    JEL: A14 C70
    Date: 2008–12
  2. By: Elsner, Wolfram; Hocker, Gero; Schwardt, Henning
    Abstract: Transaction cost economics explains organizations in a simplistic ‘market-vs.-hierarchy’ dichotomy. In this view, complex real-world coordination forms are simply considered ‘hybrids’ of those ‘pure’ and ideal forms, thus being located on a one-dimensional ‘line’ between them. This ‘organizational dichotomy’ is mainly based on relative marginal transaction costs, relative lengths of value-added chains, and ‘rational choice’ of coordination form. The present paper, in contrast, argues that pure ‘market’ and ‘hierarchy’, even including their potential hybrids, are a theoretically untenable and empirically void set. Coordination forms, it is argued, have to be conceptualized in a fundamentally different way. A relevant ‘organizational space’ must reflect the dimensions of a complex world such as dilemma-prone direct interdependence, resulting in strong strategic uncertainty, mutual externalities, collectivities, and subsequent emergent process. This, in turn, will lead either to (1) informally institutionalized, problem-solving cooperation (the instrumental dimension of the institution) or (2) mutual blockage, lock-in on an inferior path, or power- and status-based market and hierarchy failure (the ceremonial dimension of the institution). This paper establishes emergent instrumental institutionalized cooperation as a genuine organizational dimension which generates a third ‘attractor’ besides ‘market’ and ‘hierarchy’, i.e., informal network. In this way, an ‘organizational triangle’ can be generated which may serve as a more relevant heuristic device for empirical organizational research. Its ideal corners and some ideal hybrids on its edges (such as ideal clusters and ideal hub&spoke networks) still remain empirically void, but its inner space becomes empirically relevant and accessible. The ‘Organizational Triangle’ is tentatively applied (besides casual reference to corporate behavior that has lead to the current financial meltdown), by way of a set of criteria for instrumental problem-solving and a simple formal algorithm, to the cases of the supplier network of ‘DaimlerChrysler US International’ at Tuscaloosa, AL, the open-source network Linux, and the web-platforms Wikipedia and ‘Open-Source Car’. It is considered to properly reflect what is generally theorized in evolutionary-institutional economics of organizations and the firm and might offer some insight for the coming industrial reconstructions of the car and other industries.
    Keywords: Market vs. Hierarchy; Transaction Costs; Complexity; Institutionalization; Network Formation; Hub&Spoke Supplier Networks; Open-Source Networks
    JEL: D23 L14 D85
    Date: 2009–03
  3. By: José Sequeira (Porto Vivo - Sociedade de Reabilitação Urbana (SRU); INESC Porto); Aurora A.C. Teixeira (INESC Porto; CEFUP, Faculdade de Economia, Universidade do Porto)
    Abstract: Although scientometric and bibliometric studies embrace a much wider perspective of the linkages/networks of R&D institutions than standard economic studies, to the best of our knowledge, these studies have not yet made use of scientometric tools to analyse the influence and impact of R&D institutions. Moreover, the international perspective has so far been neglected both in standard and bibliometric studies. Based on networks of 1239 foreign co-authorships and 13035 foreign citation linkages, we demonstrate that INESC Porto international influence has considerably expanded since 2003, a year that coincided with the implementation of an internal policy of granting monetary prizes to publications in scientific international journals. In terms of co-authorship, the network of INESC Porto more than duplicated (13 countries in the initial period to 27 in 2004-07). In terms of citations, INESC Porto’s network encompassed almost 40 countries during the whole period (1996-2007). Its more prolific units (optoelectronics, energy and multimedia) presented a rather distinct pattern both in terms of size and evolution of the corresponding network boundaries. The network size of foreign co-authorships was not much different between the three units by the beginning of the 2000s (around 10 countries) but it evolved quite distinctly. The most remarkable pattern was registered by the multimedia (UTM) unit, whose network size rose exponentially to 21 countries in 2004-07. This contrasted with the decline (down to 8 countries) of the energy (USE) unit. The citation network of the optoelectronic unit (UOSE) was by far the largest, until 2003, involving 34 distinct countries, which contrasted with the size of USE (12 countries) and UTM (1 country). But again, after 2003, the size of the citation network of USE and UTM converged spectacularly to that of UOSE’s, reaching in the last period 21 and 16, respectively. The influence of INESC Porto reaches all five continents, especially when we consider citation networks. Indeed, excluding the citations from authors affiliated in Portuguese institutions, those that most cite INESC Porto’s (and UOSE’s) works are affiliated in institutions located in China, the UK and the US. The scientific works produced by USE influences mostly authors affiliated in institutions located in India, China and Spain, whereas for UTM the corresponding countries are the US, Germany and Italy. We infer from the evidence analysed that not only did the boundaries of INESC Porto’s scientific network substantially enlarge in the period of analysis (1996-2007) but its ‘quality’ also evidenced a positive evolution, with authors affiliated in institutions located in the scientific frontier countries citing works of INESC Porto (and its units).
    Keywords: Bibliometrics, Knowledge networks; R&D Institutions
    Date: 2009–03
  4. By: Aurora A.C. Teixeira (INESC Porto; CEFUP, Faculdade de Economia, Universidade do Porto); José Sequeira (Porto Vivo - Sociedade de Reabilitação Urbana (SRU); INESC Porto)
    Abstract: Traditionally, studies on the influence and impact of knowledge-producing organisations have been addressed by means of strict economic analysis, stressing their economic impact to a local, regional or national extent. In the present study, an alternative methodology is put forward in order to evaluate the international scientific impact and influence of a knowledge-producing and -diffusing institution. We introduce a new methodology, based on scientometric and bibliometric tools, which complement traditional assessments by considering the influence of a R&D institution when looking at the scientific production undertaken and the recognition of its relevance by its international peer community. Focusing on the most prolific scientific areas of INESC Porto, and resorting to published scientific work recorded in the Science Citation Index (SCI), we show that INESC Porto has enlarged its international scientific network. The logit estimations demonstrate that the wide geographical influence of INESC Porto scientific research is a result not of its international positioning in terms of co-authorships, but rather a result of the quality of its scientific output.
    Keywords: Impact and influence assessment methods; R&D Institutions; Bibliometrics, Scientometrics; knowledge network; INESC Porto
    JEL: O39 C81 L31
    Date: 2009–03

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