nep-net New Economics Papers
on Network Economics
Issue of 2012‒11‒24
ten papers chosen by
Yi-Nung Yang
Chung Yuan Christian University

  1. Centrality and content creation in networks: The case of German Wikipedia By Kummer, Michael E.; Saam, Marianne; Halatchliyski, Iassen; Giorgidze, George
  2. Parameters of Regional Cooperative Behavior in the German Biotech Industry – A Quantitative Social Network Analysis By Timo Mitze; Falk Strotebeck
  3. Fixed and Mobile Networks: Substitution, Complementarity and Convergence By OECD
  4. The Influence of Communication Frequency with Social Network Actors on the Continuous Innovation Adoption: Organic Farmers in Germany By Unay Gailhard, Ilkay; Bavorova, Miroslava; Pirscher, Frauke
  5. Evolution of Social networks By Christoph Kuzmics; Mathias Staudigl; Brian W. Rogers
  6. The Desire to Influence Others By Abdolkarim Sadrieh; Marina Schröder
  7. Group Size and Cooperation among Strangers By John Duffy; Huan Xie
  8. On the role of international benchmarking of electricity Transmission System Operators facing significant investment requirements By Gert Brunekreeft
  9. The invisible hand of social network: Wie viel Transparenz in Sozialen Netzwerken ist ökonomisch? By Forkefeld, Nina
  10. How Sensitive is Strategy Selection in Coordination Games? By Siegfried K. Berninghaus; Lora R. Todorova; Bodo Vogt

  1. By: Kummer, Michael E.; Saam, Marianne; Halatchliyski, Iassen; Giorgidze, George
    Abstract: When contributing content on large online platforms, producers of user-generated content have to decide where to contribute. On a complex and dynamic platform like Wikipedia, this decision is expected to depend on the way the content is organized. We analyse whether the hyperlinks on Wikipedia channel the attention of producers towards more central articles. We observe a sample 7,635 articles belonging to the category 'EconomicsI on German Wikipedia over 153 weeks and measure their centrality both within this category and in the network of over one million German Wikipedia articles. Our analysis reveals that an additional link from the observed category is associated with around 140 bytes of additional content and with an increase in the number of authors by nearly 0.5. Moreover we observe that the rate of content generation increases notably when previously unlinked articles get connected to the main cluster in the category. --
    Keywords: Wikipedia,network position,user-generated content,hyperlinks
    JEL: L14 D83
    Date: 2012
  2. By: Timo Mitze; Falk Strotebeck
    Abstract: We analyse the determinants of network formation in Germany’s biotechnology industry using social network analysis combined with a regression approach for count data. Outcome variable of interest is the degree centrality of German regions, which is specified as a function of the region’s innovative and economic performance as well as biotech-related policy variables. The inclusion of the latter allows us to shed new light on the question to what extent R&D-based cluster policies are able to impact on the formation of the German biotech network. Our results show that policy indicators such as the volume of public funding for collaborative R&D activity are positively correlated with the region’s overall and interregional degree centrality. However, besides this direct funding effect, we do not observe any further (non-pecuniary) advantages such as prestige or image effects. Regarding the role played by locational factors as elements of the sector-specific and broader regional innovation system, we find that the number of biotech patent applications, the share of regional hightech start-ups and the population density among other factors are positively correlated with the region’s position in the German biotechnology network.
    Keywords: Biotechnology; network formation; degree centrality; R&D policy
    JEL: C21 R38
    Date: 2012–10
  3. By: OECD
    Abstract: This report examines the convergence of fixed and mobile (wireless) networks and services. It considers these developments against a long standing question of whether they are complementary or competitive. The report concludes that they are both. Mobile providers have garnered a very large share of traditional services, such as telephony, over the past decade. Nevertheless, mobile networks are dependent on fixed networks and could not efficiently meet the rapidly expanding demand of users without the contributions made by fixed broadband networks. Managing the differences between networks, and their respective strengths and limitations, is one reason there is still tremendous differences in the pricing of some communication services on these networks.
    Date: 2012–10–08
  4. By: Unay Gailhard, Ilkay; Bavorova, Miroslava; Pirscher, Frauke
    Abstract: This study investigates previously experienced farmers’ adoption behavior of Agri-Environmental Measures (AEM) in Central Germany. We consider organic farmers as previously experienced with AEM as they already have practiced the environmental management standards for organic farming. The logit model is used to explain the influence of communication frequency on the probability of adoption of other environmental measures as a continuous innovation. Social network analysis is carried out to investigate the role of attitudes towards information sources. Our findings demonstrate the influence of communication frequency with interpersonal network actors (agricultural organizations and neighborhood farmers) on continuous innovation adoption in three ways: First, the communication frequency of organic farmers with both agricultural organizations and neighborhood farmers does not influence the original farmer’s decision to adopt AEM. Second, a higher education level of frequently communicated neighborhood farmers increases the probability of farmers’ AEM adoption, while the innovativeness of frequently communicated farmers does not. Third, inside the population of frequently communicated organic farmers, formal information sources (agricultural organizations) are considered as more important information sources about agricultural issues than are informal sources (other farmers).
    Keywords: Interpersonal communication network, communication frequency, innovation adoption, agri-environmental measures, Agribusiness, Agricultural and Food Policy,
    Date: 2012–09–18
  5. By: Christoph Kuzmics (Bielefeld University); Mathias Staudigl (Bielefeld University); Brian W. Rogers
    Abstract: Modeling the evolution of networks is central to our understanding of modern large communication systems, such as theWorld-Wide-Web, as well as economic and social networks. The research on social and economic networks is truly interdisciplinary and the number of modeling strategies and concepts is enormous. In this survey we present some modeling approaches, covering classical random graph models and game-theoretic models, which may be used to provide a unified framework to model and analyze the evolution of networks.
    Date: 2012–10
  6. By: Abdolkarim Sadrieh (Faculty of Economics and Management, Otto-von-Guericke University Magdeburg); Marina Schröder (Faculty of Economics and Management, Otto-von-Guericke University Magdeburg)
    Abstract: We introduce the give-or-destroy game that allows us to fully elicit an individual's social preference schedule. We find that about one third of the population exhibits both pro-social and anti-social preferences that are independent of payoff comparisons with those who are affected. We call this type of preference a desire to influence others. The other two thirds of the population consist to almost equal parts of payoff maximizers and pro-socials. Furthermore, we find that full information and experimenter demand may increase the extent of pro-social preferences, but neither treatment affects the extent of anti-social preferences or the distribution of social types in the population.
    Keywords: altruism, joy of destruction, other-regarding behavior, giving and destruction, kindness, fairness, spite, envy
    JEL: A13 C90 D31 D63 D64
    Date: 2012–10
  7. By: John Duffy (University of Pittsburgh); Huan Xie (Concordia University)
    Abstract: We study how group size affects cooperation in an infinitely repeated n-player Prisoner's Dilemma (PD) game. In each repetition of the game, groups of size n less than or equal to M are randomly and anonymously matched from a fixed population of size M to play the n-player PD stage game. We provide conditions for which the contagious strategy (Kandori, 1992) sustains a social norm of cooperation among all M players. Our main finding is that if agents are sufficiently patient, a social norm of society-wide cooperation becomes easier to sustain under the contagious strategy as n converges to M.
    Keywords: Cooperation, Social Norms, Group Size, Repeated Games, Random Matching, Prisoner's Dilemma
    JEL: C72 C73 C78 Z13
    Date: 2012–09–12
  8. By: Gert Brunekreeft
    Abstract: Electricity networks currently face massive investment requirements. This paper argues that, given the investment requirements, (international) benchmarking is not an adequate tool for the regulation of transmission system operators (TSO). Errors in the outcomes of benchmarking will likely distort network investment and therefore the costs of doing it wrong are high. The paper discusses options to reduce the weight of benchmarking in TSO regulation and options that do not rely on benchmarking at all. Overall, facing massive investment requirements, it seems desirable to switch to a regulatory system with ex-ante investment approval and away from ex-post benchmarking.
    Keywords: electricity, network, regulation, benchmarking, uncertainty
    JEL: D42 G00 L51
    Date: 2012–10
  9. By: Forkefeld, Nina
    Abstract: Im Rahmen der Wirtschaftsethik werden Annahmen und Modelle der Ökonomie durch eine anthropologische Perspektive ergänzt. In Anbetracht der aktuellen Finanzmarkt- und Euro- Krisen besteht ein enormer ethischer Anspruch an wirtschaftliches Handeln und die Folgen wirtschaftlichen Handelns. Ein ebensolcher Anspruch ist auch gegenüber Internetkonzernen und Neuen Medien spürbar. Soziale Netzwerke wie Facebook nötigen ihre Nutzer zur Preisgabe privater Daten und zur Übertragung von Urheberrechten. Gerade Facebook und Google gelten gemeinhin als notorische Datensammler und stehen dafür nicht selten am Pranger. Missfallens-Stürme von Nutzern führen aber regelmäßig zur Anpassung von Datenschutzbestimmung. Ob diese Änderungen immer im Sinne der Nutzer sind bleibt dabei offen. Wie aber kann eine wohlfahrtsökonomisch effiziente Bestimmung des Transparenzgrades bezüglich persönlicher Daten und Urheberrechte gefunden werden? Dies soll die vorliegende Untersuchung zeigen. --
    Date: 2012
  10. By: Siegfried K. Berninghaus (Institute for Economic Theory and Statistics, Karlsruhe Institute of Technology); Lora R. Todorova (Faculty of Economics and Management, Otto-von-Guericke University Magdeburg); Bodo Vogt (Faculty of Economics and Management, Otto-von-Guericke University Magdeburg)
    Abstract: This paper presents the results of an experiment designed to study the effect produced on strategy choices when a subject reports risk preferences on a risk scale before engaging in a 2x2 coordination game. The main finding is that the act of stating one's own risk preferences significantly alters strategic behavior. In particular, subjects tend to choose the risk dominant strategy more often when they have previously stated their attitudes to risk. Within a best-response correspondence framework, this result can be explained by a change in either risk preferences or beliefs. We find that self-reporting risk preferences does not induce a change in subjects' beliefs. We argue that the behavioral arguments of strategy selection, such as focal points, framing and uncertain preferences can explain our results.
    Keywords: coordination game, questionnaire, risk scale, risk preferences, beliefs, focal points, framing, uncertain preferences
    JEL: D81 C91 C72
    Date: 2012–09

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