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on Network Economics |
| By: | Bruno Jullien; Alessandro Pavan |
| Abstract: | We study monopolistic and competitive pricing in a two-sided market where agents have incomplete information about the quality of the product provided by each platform. The analysis is carried out within a global-game framework that offers the convenience of equilibrium uniqueness while permitting the outcome of such equilibrium to depend on the pricing strategies of the competing platforms. We first show how the dispersion of information interacts with the network effects in determining the elasticity of demand on each side and thereby the equilibrium prices. We then study "informative" advertising campaigns that increase the agents’ ability to estimate their own valuations and/or the distribution of valuations on the other side of the market. |
| Date: | 2013–05–01 |
| URL: | http://d.repec.org/n?u=RePEc:nwu:cmsems:1568&r=net |
| By: | Ashadun Nobi; Seong Eun Maeng; Gyeong Gyun Ha; Jae Woo Lee |
| Abstract: | We consider the effects of the global financial crisis through a local Korean financial market around the 2008 crisis. We analyze 185 individual stock prices belonging to the KOSPI (Korea Composite Stock Price Index), cosidering three time periods: the time before, during, and after the crisis. The complex networks generate from the fully connected correlation network by using the cross-correlation coefficients among the stock price time series of the companies. We generate the threshold networks (TN), the minimal spanning tees (MST), and the hierarchical network (HN) from the fully connected cross-correlation networks. By assigning a threshold value of the cross-correlation coefficient, we obtain the threshold networks. We observe the power law of the degree distribution in the limited range of the threshold. The degree distribution of the largest cluster in the threshold networks during the crisis is fatter than other periods. The clustering coefficient of the threshold networks follows the power law in the scaling range. We also generate the minimal spanning trees from the fully connected correlation networks. The MST during the crisis period shrinks in comparison to the periods before and after the crisis. The cophenetic correlation coefficient increases during the crisis, indicating that the hierarchical structure increases during this period. When the crisis hit the market, the companies behave synchronously and their correlations become stronger than the normal period. |
| Date: | 2013–07 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:1307.6974&r=net |
| By: | Fosgerau, Mogens; Frejinger, Emma; Karlstrom, Anders |
| Abstract: | This paper considers the path choice problem, formulating and discussing an econometric random utility model for the choice of path in a network with no restriction on the choice set. Starting from a dynamic specification of link choices we show that it is equivalent to a static model of the multinomial logit form but with infinitely many alternatives. The model can be consistently estimated and used for prediction in a computationally efficient way. Similarly to the path size logit model, we propose an attribute called link size that corrects utilities of overlapping paths but that is link additive. The model is applied to data recording path choices in a network with more than 3,000 nodes and 7,000 links. |
| Keywords: | discrete choice; recursive logit; networks; route choice; infinite choice set |
| JEL: | C25 C5 |
| Date: | 2013–07 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:48707&r=net |
| By: | Belén González Díaz (Dpto. Economía Española e Inter.., Econometría e Hª Inst. Eco.); Leticia Blázquez (Dpto. Economía Española e Inter.., Econometría e Hª Inst. Eco.) |
| Abstract: | This paper aims to contribute to the literature on New Economic Geography by providing empirical evidence for the connections between new trade theory and the spatial distribution of economic activities. To do this, we apply Social Network Analysis specifically to the World Automotive Trade Network. We explore the structural features of the auto network for the years 1996 and 2009 using data on trade flows for 172 countries. Our findings suggest that the auto network has become denser, more extensive and more integrated over time, depicting a center-periphery structure in which regional clusters play a prominent role. In this configuration, strong agglomeration forces generated by companies’ desire for large and rich market access with minimum transportation costs are balanced by the search for new high-potential markets. El objetivo de este trabajo es contribuir a la literatura basada en la Nueva Geografía Económica mediante la aportación de evidencia empírica sobre la interrelación entre las nuevas teorías del comercio y la distribución espacial de las actividades económicas. Para ello empleamos la metodología de las redes sociales aplicadas concretamente a la red mundial de comercio de la industria del automóvil. Con información estadística de los flujos comerciales de 172 países, se analizan las características estructurales más importantes de la red del automóvil para los años 1996 y 2009. Los resultados ponen de manifiesto que la red de comercio mundial del automóvil se ha hecho más densa, más integrada y más extensa con el paso del tiempo reflejando una clara estructura centro-periferia donde los clusters regionales desempeñan un papel muy relevante. En la configuración de esta red, la importancia de las fuerzas de aglomeración generadas por el deseo de las empresas de acceder a los mercados más importantes con los menores costes de transporte posibles, se ven contrarrestadas por la búsqueda de nuevos mercados con un elevado potencial de crecimiento. |
| Keywords: | Red mundial del comercio del automóvil, Nueva Geografía Económica, Análisis de las redes sociales, Partes y componentes. World Automotive Trade Networks, New Economic Geography, Social Network Analysis, Parts and Components. |
| JEL: | F10 F14 F15 |
| Date: | 2013–07 |
| URL: | http://d.repec.org/n?u=RePEc:ivi:wpasec:2013-05&r=net |