nep-net New Economics Papers
on Network Economics
Issue of 2013‒06‒16
seven papers chosen by
Yi-Nung Yang
Chung Yuan Christian University

  1. Airport Congestion and Airline Network Structure By Fageda, Xavier, 1975-; Flores-Fillol, Ricardo
  2. Regional Headquarters and Their Impact on Knowledge Transfer Processes in Transnational Companies - A 'Small World' Network Perspective By Sven M. Laudien; Joerg Freiling
  3. Airline networks, mergers, and consumer welfare By Hüschelrath, Kai; Müller, Kathrin
  4. Information Sharing Networks in Linear Quadratic Games By Sergio Currarini; Francesco Feri
  5. Measuring the Influence of Networks on Transaction Costs Using a Non-parametric Regression Technique By Géraldine Henningsen; Arne Henningsen; Christian H.C.A. Henning
  6. Service network design for an intermodal container network with flexible due dates/times and the possibility of using subcontracted transport By Riessen, B. van; Negenborn, R.R.; Dekker, R.; Lodewijks, G.
  7. Anonymous Social Influence By Manuel Förster; Michel Grabisch; Agnieszka Rusinowsk

  1. By: Fageda, Xavier, 1975-; Flores-Fillol, Ricardo
    Abstract: This paper provides a theoretical and empirical analysis of the relationship between airport congestion and airline network structure. We find that the development of hub-and-spoke (HS) networks may have detrimental effects on social welfare in presence of airport congestion. The theoretical analysis shows that, although airline pro ts are typically higher under HS networks, congestion could create incentives for airlines to adopt fully-connected (FC) networks. However, the welfare analysis leads to the conclusion that airlines may have an inefficient bias towards HS networks. In line with the theoretical analysis, our empirical results show that network airlines are weakly infl uenced by congestion in their choice of frequencies from/to their hub airports. Consistently with this result, we con firm that delays are higher in hub airports controlling for concentration and airport size. Keywords: airlines; airport congestion; fully-connected networks, hub-and-spoke net- works; network efficiency JEL Classifi cation Numbers: L13; L2; L93
    Keywords: Línies aèries, Aeroports -- Direcció i administració, Oligopolis, Empreses -- Direcció i administració, Aviació comercial, 338 - Situació econòmica. Política econòmica. Gestió, control i planificació de l'economia. Producció. Serveis. Turisme. Preus,
    Date: 2012
  2. By: Sven M. Laudien (Otto von Guericke University Magdeburg & ZenTra); Joerg Freiling (University of Bremen - Faculty of Business Studies and Economics & ZenTra)
    Abstract: What role do regional headquarters (RHQ) play in the process of spreading knowledge in the internal and external network of transnational companies (TNC)? In our paper we approach this topic based on an understanding of TNC as ‘small world’ networks – a concept from the field of social psychology introduced by Milgram (1967). We employ this concept to show that RHQ as knowledge hubs foster knowledge transfer and competence building within TNCs. The main contribution of our paper is that we develop a formalized approach that provides a proof that RHQ can considerably influence information and knowledge transfer processes in TNCs. By doing so, we try to reduce a gap in research on RHQ.
    Keywords: Transnational company, formal governance, regional headquarters, knowledge transfer, networks, competence building
    Date: 2013–05
  3. By: Hüschelrath, Kai; Müller, Kathrin
    Abstract: We study the consumer welfare effects of mergers in airline networks. Based on the development of a general classification of affected routes, we apply a difference-indifferences approach to exemplarily investigate the price effects of the America West Airlines - US Airways merger completed in 2005. We find that although average prices increased substantially on routes in which both airlines competed either on a non-stop or one-stop basis prior to the merger, substantial average price reductions observed for routes without any premerger overlap suggest that the merger led to a net increase in consumer welfare. --
    Keywords: Airline industry,merger,market power,consumer welfare,price effects
    JEL: L40 L93
    Date: 2013
  4. By: Sergio Currarini (University of Leicester, Universita' di Venezia, Euro-Mediterranean Center on Climate Change, CIP Division and FEEM); Francesco Feri (Royal Holloway, University of London)
    Abstract: We study the bilateral exchange of information in the context of linear quadratic games. An information structure is here represented by a non directed network, whose nodes are agents and whose links represent sharing agreements. We first study the equilibrium use of information in any given sharing network, finding that the extent to which a piece of information is "public" affects the equilibrium use of it, in line with previous results in the literature. We then study the incentives to share information ex-ante, highlighting the role of the elasticity of payoffs to the equilibrium volatility of one's own strategy and of one's opponents' strategies. For the case of uncorrelated signals we fully characterize pairwise stable networks for the general linear quadratic game. For the case of correlated signals, we study pair-wise stable networks for three specific linear quadratic games - Cournot oligopoly, Keynes’ beauty contest and Public good provision - in which strategies are substitute, complement and orthogonal, respectively. We show that signals’ correlation favors the transmission of information, but may also prevent all information from being transmitted.
    Keywords: Information Sharing, Networks, Bayesian Equilibrium, Beauty Contest, Oligopoly
    JEL: D43 D82 D85 L13
    Date: 2013–05
  5. By: Géraldine Henningsen (DTU Management Engineering, Technical University of Denmark); Arne Henningsen (Department of Food and Resource Economics, University of Copenhagen); Christian H.C.A. Henning (Institute of Agricultural Economics, Christian-Albrechts University Kiel)
    Abstract: All business transactions as well as achieving innovations take up resources, subsumed under the concept of transaction costs. One of the major factors in transaction costs theory is information. Firm networks can catalyse the interpersonal information exchange and hence, increase the access to non-public information so that transaction costs are reduced. Many resources that are sacrificed for transaction costs are inputs that also enter the technical production process. As most production data do not distinguish between these two usages of inputs, high transaction costs result in reduced observed productivity. We empirically analyse the effect of networks on productivity using a cross-validated local linear non-parametric regression technique and a data set of 384 farms in Poland. Our empirical study generally supports our hypothesis that networks affect productivity. Large and dense trading networks and dense information networks and household networks have a positive impact on a farm’s productivity. A bootstrapping procedure confirms that this result is statistically significant.
    Keywords: Information networks, Transaction Costs, Non-parametric estimation, Productivity analysis
    JEL: D22 D23 D24 L14 Q12
    Date: 2013–05
  6. By: Riessen, B. van; Negenborn, R.R.; Dekker, R.; Lodewijks, G.
    Abstract: An intermodal container transportation network is being developed between Rotterdam and several inland terminals in North West Europe: the EUROPEAN GATEWAY SERVICES (EGS) network. This network is developed and operated by the seaports of EUROPE CONTAINER TERMINALS (ECT). To use this network cost-efficiently, a centralized planning of the container transportation is required, to be operated by the seaport. In this paper, a new mathematical model is proposed for the service network design. The model uses a combination of a path-based formulation and a minimum flow network formulation. It introduces two new features to the intermodal network-planning problem. Firstly, overdue deliveries are penalized instead of prohibited. Secondly, the model combines self-operated and subcontracted services. The service network design considers the network-planning problem at a tactical level: the optimal service schedule between the given network terminals is determined. The model considers self-operated or subcontracted barge and rail services as well as transport by truck. The model is used for the service network design of the EGS network. For this case, the benefit of using container transportation with multiple legs and intermediate transfers is studied. Also, a preliminary test of the influence of the new aspects of the model is done. The preliminary results indicate that the proposed model is suitable for the service network design in modern intermodal container transport networks. Also, the results suggest that a combined business model for the network transport and terminals is worth investigating further, as the transit costs can be reduced with lower transfer costs.
    Keywords: container transportation;intermodal planning;network optimization;ynchromodal planning
    Date: 2013–06–01
  7. By: Manuel Förster (Université Paris 1 Panthéon-Sorbonne, France, Université catholique de Louvain – CORE, Belgium); Michel Grabisch (Paris School of Economics – Université Paris 1 Panthéon-Sorbonne, France); Agnieszka Rusinowsk (Paris School of Economics – CNRS Centre d’Économie de la Sorbonne, France)
    Abstract: We study a stochastic model of influence where agents have “yes” or “no” inclinations on some issue, and opinions may change due to mutual influence among the agents. Each agent independently aggregates the opinions of the other agents and possibly herself. We study influence processes modelled by ordered weighted averaging operators, which are anonymous: they only depend on how many agents share an opinion. For instance, this allows to study situations where the influence process is based on majorities, which are not covered by the classical approach of weighted averaging aggregation. We find a necessary and sufficient condition for convergence to consensus and characterize outcomes where the society ends up polarized. Our results can also be used to understand more general situations, where ordered weighted averaging operators are only used to some extent. We provide an analysis of the speed of convergence and the possible outcomes of the process. Furthermore, we apply our results to fuzzy linguistic quantifiers, i.e., expressions like “most” or “at least a few”.
    Keywords: Influence, Anonymity, Ordered Weighted Averaging Operator, Convergence, Consensus, Speed Of Convergence, Fuzzy Linguistic Quantifier
    JEL: C7 D7 D85
    Date: 2013–05

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