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on Network Economics |
| By: | Ethan Cohen-Cole (University of Maryland - College Park); Andrei Kirilenko (Commodity Futures Trading Commission); Eleonora Patacchini (University of Rome - La Sapienza) |
| Abstract: | Network spillovers explain as much as 90% of the individual variation in returns in a fully electronic market. We study two fully electronic, highly liquid markets, the Dow an S&P 500 e-mini futures markets. Within these markets, we use a unique dataset of realized trades that includes the precise topology of transactions; this topology allows us to identify precisely both the relevance of network structure as well as endogenous network spillovers. Within these markets, we will show that network positioning on the part of trader leads to remarkable spillovers in return. Empirically, we estimate that the implied average multiplier, the ratio of a individual level shock to the total network one, is as large as 20. A gain of $1 for a trader leads to an average of $20 in gains for all traders and much more for connected ones. In a zero-sum market, such as the one in this study, this suggests a very large re-allocation of returns according to network structure. |
| JEL: | G10 C21 |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:eie:wpaper:1012&r=net |
| By: | Jeon, Doh-Shin; Rochet, Jean-Charles |
| JEL: | D42 L42 L82 |
| Date: | 2010–05 |
| URL: | http://d.repec.org/n?u=RePEc:ner:toulou:http://neeo.univ-tlse1.fr/2685/&r=net |
| By: | Özlem Bedre-Defolie (ESMT European School of Management and Technology); Emilio Calvano (Bocconi University) |
| Abstract: | Payment card networks, such as Visa, require merchants' banks to pay substantial "interchange" fees to cardholders' banks, on a per transaction basis. This paper shows that a network's profit-maximizing fee induces an inefficient price structure, over-subsidizing card usage and over-taxing merchants. In contrast to the literature we show that this distortion is systematic and arises from the fact that consumers make two distinct decisions (membership and usage) whereas merchants make only one (membership). These findings are robust to competition for cardholders and/or for merchants, network competition, and strategic card acceptance to attract consumers. |
| Keywords: | payment card networks, interchange fees, merchant fees |
| JEL: | G21 L11 L42 L31 L51 K21 |
| Date: | 2010–08–11 |
| URL: | http://d.repec.org/n?u=RePEc:esm:wpaper:esmt-10-005&r=net |
| By: | Lindelauf, R.; Borm, P.E.M.; Hamers, H.J.M. (Tilburg University, Center for Economic Research) |
| Abstract: | Subject classifications: Terrorism; Counterinsurgency; Intelligence; Defense; Covert networks; Affiliation networks. |
| JEL: | C50 C78 |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:dgr:kubcen:201053&r=net |
| By: | Matthias Deschryvere |
| Abstract: | The information on the impact of mobility on society is plenty but scattered. A good understanding of the impact of mobility requires first an understanding of what mobility actually means. This paper lists aspects of mobility that can contribute to a useful conceptualisation. It is found that in its core mobility is about connectivity of individuals. In addition mobility is more than just geographical mobility of human interactions. Mobility also has important temporal and contextual dimensions. Mobile technology has increased mobility in these dimensions and has been the driver of digitalising society into a mobile network society that connects not only individuals but also remote data and objects. There seems to be a need for an in depth conceptualisation of mobility that has to be updated along the lines of a fast moving mobile technology and mobile society |
| Keywords: | mobility, mobile communication, network society |
| JEL: | L96 O30 |
| Date: | 2010–08–11 |
| URL: | http://d.repec.org/n?u=RePEc:rif:dpaper:1218&r=net |
| By: | Christopher C. Liu (Rotman School of Management, Toronto, Canada); Toby E. Stuart (Harvard Business School, Entrepreneurial Management Unit) |
| Abstract: | In innovative industries, private-sector companies increasingly are participants in open communities of science and technology. To participate in the system of exchange in such communities, firms often publicly disclose what would otherwise remain private discoveries. In a quantitative case study of one firm in the biopharmaceutical sector, we explore the consequences of scientific publication-an instance of public disclosure-for a core set of activities within the firm. Specifically, we link publications to human capital management practices, showing that scientists' bonuses and the allocation of managerial attention are tied to individuals' publications. Using a unique electronic mail dataset, we find that researchers within the firm who author publications are much better connected to external (to the company) members of the scientific community. This result directly links publishing to current understandings of absorptive capacity. In an unanticipated finding, however, our analysis raises the possibility that the company's most prolific publishers begin to migrate to the periphery of the intra-firm social network, which may occur because these individuals' strong external relationships induce them to reorient their focus to a community of scientists beyond the firm's boundary. |
| Date: | 2010–08 |
| URL: | http://d.repec.org/n?u=RePEc:hbs:wpaper:11-012&r=net |
| By: | Askenazy, P.; Celerier, C.; Irac, D. |
| Abstract: | The share of retail sales made via distance selling has increased steadily, driven by Internet sales. Meanwhile, a large body of research has been devoted to measuring the impact of online shopping on consumer prices. These studies are based primarily on microeconomic data and they reveal contrasting effects due to diverging microeconomic behaviours. This paper aims to use a macro-sector estimation to show how the price-decreasing effects of Internet shopping outweigh the price-increasing effects. In that purpose, we use French price index series and distance selling sales covering about 30 sectors, from 1990 to 2007. We find that downward effects dominate: the recent development of distance selling, due to the development of online selling, results in lower prices. |
| Keywords: | E-Commerce, Price, Competition. |
| JEL: | D12 E31 L8 |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:bfr:banfra:288&r=net |