nep-net New Economics Papers
on Network Economics
Issue of 2013‒04‒06
five papers chosen by
Yi-Nung Yang
Chung Yuan Christian University

  1. Network Structure Matters: Applications to R&D collaboration, collusion, and online communication networks. By KORKMAZ, Gizem
  2. Network Formation and Geography : Modelling Approaches, Underlying Conceptions, Recent and Promising Extensions By Corinne Autant-Bernard; Cilem Selin Hazir
  3. “Determinants of Broadband Access: Is Platform Competition always the Key Variable to Success?” By Xavier Fageda; Rafael Rubio; Montserrat Termes
  4. Endogenous Community Formation and Collective Provision - A Procedurally Fair Mechanism By Werner Güth
  5. Social activity and collective action for agricultural innovation: a case study of New Rural Reconstruction in China By Mary-Françoise Renard; Huanxiu GUO

  1. By: KORKMAZ, Gizem
    Abstract: This thesis studies the interplay between network structure and strategic decision making given the backdrop of economic and social networks. The first two chapters study how firms’ incentives to invest in costly R&D are affected by the pattern of R&D collaborations in a certain industry. These two chapters propose formal models that build upon and enrich the previous literature, which abstracted from two crucial dimensions of the problem. The first chapter introduces the possibility that inter-firm links aiming at R&D collaboration could facilitate market collusion. The second chapter incorporates network-based externalities resulting from informational flows and congestion that are associated with R&D collaborations. These chapters suggest that the benefits of possible inter-firm collaboration must be reevaluated from the point of their welfare consequences. The last chapter aims to improve our understanding of how collective action spreads in large and complex networks in which agents use online social networks as communication tools. To this end, we develop a dynamic game-theoretic model of the “on-set of revolutions” that focuses on the local spread of information in order to study how network structure, knowledge and information-sharing interact in facilitating coordination through online communication networks.
    Date: 2012
  2. By: Corinne Autant-Bernard (GATE Lyon Saint-Etienne - Groupe d'analyse et de théorie économique - CNRS : UMR5824 - Université Lumière - Lyon II - École Normale Supérieure - Lyon); Cilem Selin Hazir (GATE Lyon Saint-Etienne - Groupe d'analyse et de théorie économique - CNRS : UMR5824 - Université Lumière - Lyon II - École Normale Supérieure - Lyon)
    Abstract: Due to the strong polarisation of economic activities in space and rise in collaborative behaviour, increasing attention has recently been devoted to the relationship between geography and network formation. The studies conducted on this topic reveal a high variation in terms of methodologies. Putting special emphasis on R&D networks, the aim of this chapter is to review the different methods and assess their ability to address the issues raised by the relationship between network and space. We first discuss the different facets of the relationship between geography and networks. Then, we detail the methodological approaches and their capability to test each effect of geography on network formation. We argue that the effect of distance on dyads have received the major attention so far, but the development of block modelling and top-down approaches opens new research perspectives on how distance or location might affect formation of more complex structures. Moreover, recent improvement in temporal models also offers also offers opportunities to better separate spatial effects from that of influence over time.
    Keywords: Social Network Analysis ; Stochastic Actor-based Models ; Gravity models ; Complex Network Analysis ; ERG ; Preferential Attachment Model
    Date: 2013–03–22
  3. By: Xavier Fageda (Faculty of Economics, University of Barcelona); Rafael Rubio (Faculty of Economics, University of Barcelona); Montserrat Termes (Faculty of Economics, University of Barcelona)
    Abstract: Previous studies have identified the rivalry among technological platforms as one of the main driving forces of broadband services penetration. This paper draws on data from the Spanish market between 2005 and 2011 to estimate the main determinants of broadband prices. Controlling for broadband tariffs features and network variables, we examine the impact of the different modes of competition on prices. We find that inter-platform competition has no significant effects over prices, while intra-platform competition is a key driver of the prices charged in the broadband market. Our analysis suggests that the impact of different types of competition on prices is critically affected by the levels of development of the broadband market achieved by the considered country.
    Keywords: broadband prices, inter-platform competition, intra-platform competition. JEL classification: L38, L51, L96
    Date: 2013–03
  4. By: Werner Güth (Max Planck Institute of Economics, Strategic Interaction Group)
    Abstract: A group of actors, individuals or firms, can engage in collectively providing projects which may be costly or generating revenues and which may benefit some and harm others. Based on requirements of procedural fairness (Güth and Kliemt, 2013), we derive a bidding mechanism determining endogenously who participates in collective provision, which projects are implemented, and the positive or negative payments due to the participating members. We justify and discuss this procedural fairness approach and compare it with that of optimal, e.g. welfaristic game theoretic mechanism design (e.g. Myerson, 1979).
    Keywords: Procedural fairness, Mechanism design, Equality axiom, Public provision, Collective action
    JEL: D44 D46 D61 D62 D63 D71 D72 D73 D74
    Date: 2013–03–21
  5. By: Mary-Françoise Renard (CERDI - Centre d'études et de recherches sur le developpement international - CNRS : UMR6587 - Université d'Auvergne - Clermont-Ferrand I); Huanxiu GUO (CERDI - Centre d'études et de recherches sur le developpement international - CNRS : UMR6587 - Université d'Auvergne - Clermont-Ferrand I)
    Abstract: Since 2003, a grass-roots movement of New Rural Reconstruction (NRR) has emerged in China to experience alternative model of rural development. The movement adopts a particular approach for rural development on basis of rural social and cultural reconstruction. In order to understand this social approach, we investigate an original NRR experiment in a poor village of south China, where organic farming is promoted by means of basketball game. An in-depth household survey is conducted to qualitatively analyze this social approach and derive intuitive hypothesis of extended social network for empirical test. With a panel structure dataset collected by the survey, we quantitatively identify the causal effect of social network by exploiting the endogeneity of social network formation. Our identification result provides micro evidence for a large social multiplier effect in the diffusion of organic farming, whereas it is negative for organic experts. Also, our results highlight the role of women, education and labor force for the development of organic farming. On basis of these results, we conclude that organic farming is suitable but challenging for small villages in China, while social activity is a good lever to achieve farmers' collective action for its large diffusion.
    Keywords: New rural reconstruction; Social network; Organic farming; China. D71;O33;Q55
    Date: 2013–03–19

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