nep-net New Economics Papers
on Network Economics
Issue of 2009‒12‒11
four papers chosen by
Yi-Nung Yang
Chung Yuan Christian University

  1. Endogenous formation of alliances in conflicts By Francis Bloch
  2. VIllage Economics and the Structure of Extended Family Networks By Manuela Angelucci
  3. Diffusion Processes on Complex Networks By Natalie Svarcova; Petr Svarc
  4. Social Ties and User Generated Content: Evidence from an Online Social Network By Reto Hoffstetter; Harikesh Nair; Scott Shriver; Klaus Miller

  1. By: Francis Bloch (Department of Economics, Ecole Polytechnique - CNRS : UMR7176 - Polytechnique - X)
    Abstract: This paper studies the endogenous formation of alliance in conflicts offering a survey of the recent literature and providing new results. We analyze the effect of group sizes on conflict, study endogenous alliance formation in a general model of conflict with linear technology and discuss recent developments of the theory of alliance formation, involving the determination of sharing rules inside the alliance and dynamic alliance formation in nested conflicts.
    Keywords: alliance formation, conflicts, rent-seeking contest, collective action, the paradox of group size, sharing rules, nested conflicts
    Date: 2009
  2. By: Manuela Angelucci
    Abstract: This paper documents how the structure of extended family networks in rural Mexico relates to the poverty and inequality of the village of residence. Using the Hispanic naming convention, we construct within-village extended family networks in 504 poor rural villages. Family networks are larger (both in the number of members and as a share of the village population) and out-migration is lower the poorer and the less unequal the village of residence.
    Keywords: extended family network, Hispanic naming convention, village marginality, residence, poverty, inequality, families, villages, rural, family, Mexico, residence, population, migration,
    Date: 2009
  3. By: Natalie Svarcova (Institute of Economic Studies, Faculty of Social Sciences, Charles University, Prague, Czech Republic); Petr Svarc (Institute of Economic Studies, Faculty of Social Sciences, Charles University, Prague, Czech Republic)
    Abstract: In this paper we apply agent-based methodology on an issue that is fundamental for economic prosperity and growth: the diffusion of innovations. The diffusion of innovations is one of the topics where agent-based simulation is an extremely fruitful method allowing not only the observation of stable states but also the process and development of the diffusion. Furthermore, empirical studies revealed that the topological structure of interactions among individuals importantly influences the diffusion’s course and outcomes. We analyze diffusion outcomes for five different topologies, assuming markets where individuals are highly influenced by the adoption decision of their peers and innovations are introduced into the markets in two different ways: mass media campaigns and seeding procedures. Our results indicate that the topology of the relations among individuals importantly influences the speed and development of the diffusion process as well as final market penetration. Scale free topology seems to promote fast innovation diffusion, at the same time being characterized by the high uncertainty of the diffusion outcomes. Less heterogeneous networks (small worlds, two-dimensional lattice and ring) yield a much slower diffusion of the innovation, at the same time being much less unpredictable than scale free topology.
    Keywords: innovation diffusion, complex networks, scale-free networks
    JEL: O31 O33
    Date: 2009–12
  4. By: Reto Hoffstetter (University of Bern); Harikesh Nair (Stanford Graduate School of Business); Scott Shriver (Stanford Graduate School of Business); Klaus Miller (University of Bern)
    Abstract: We use variation in wind speeds at surfing locations in Switzerland as exogenous shifters of users' propensity to post content about their surfing activity onto an online social network. We exploit this variation to test whether users' social ties on the network have a causal effect on their content generation, and whether content generation in turn has a similar causal effect on the users' ability to form social ties. Economically significant causal effects of this kind can produce positive feedback that generate multiplier effects to interventions that subsidize tie formation. We argue these interventions can therefore be the basis of a strategy by the firm to indirectly facilitate content generation on the site. The exogenous variation provided by wind speeds enable us to measure this feedback empirically and to assess the return on investment from such policies. We use a detailed dataset from an online social network that comprises the complete details of social tie formation and content generation on the site. The richness of he data enable us to control for several spurious confounds that have typically plagued empirical analysis of social interactions. Our results show evidence for significant positive feedback in user generated content. We discuss the implications of the estimates for the management of the content and the growth of the network.
    Keywords: social networks, user generated content, social interactions, advertising revenue, simultaneity, identification
    JEL: C25 C61 D91 L11 L12 L16 L68 M31
    Date: 2009–11

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