nep-net New Economics Papers
on Network Economics
Issue of 2013‒09‒26
five papers chosen by
Yi-Nung Yang
Chung Yuan Christian University

  1. The Value of Social Networks in Financial Markets By Michela Rancan
  2. Input-Output-based Measures of Systemic Importance By Aldasoro, Iñaki; Angeloni, Ignazio
  3. Efficient networks for a class of games with global spillovers By Sudipta Sarangi; Pascal Billand; Christophe Bravard; Jacques Durieu
  4. Limited farsightedness in network formation By KIRCHSTEIGER, Georg; MANTOVANI, Marco; MAULEON, Ana; VANNETELBOSCH, Vincent
  5. Indonesian Innovations on Information Technology 2013: Between Syntactic and Semantic Textual Network By Situngkir, Hokky

  1. By: Michela Rancan
    Abstract: Social contacts influence decisions and economic outputs in a variety of contexts. Does social network matter also in financial markets? In this paper I investigate the effect of social networks on mutual funds performance by exploiting data on the education of U.S. fund managers. The results show that performance is better for fund managers with many social connections. Furthermore, positional advantages in the social network generate superior performance. This evidence suggests that social interaction and information spillovers have a positive and meaningful value for mutual funds.
    Keywords: Social Network, Mutual Fund, Performance
    JEL: G23 L14
    Date: 2013–03
  2. By: Aldasoro, Iñaki; Angeloni, Ignazio
    Abstract: The analyses of intersectoral linkages of Leontief (1941)and Hirschman (1958) provide a natural way to study the transmission of risk among interconnected banks and to measure their systemic importance. In this paper we show how classic input-output analysis can be applied to banking and how to derive six indicators that capture different aspects of systemic importance, using a simple numerical example for illustration. We also discuss the relationship with other approaches, most notably network centrality measures, both formally and by means of a simulated network.
    Keywords: banks, input-output, systemic risk, too-interconnected-to fail, networks, interbank markets
    JEL: C67 G00 G01 G20
    Date: 2013–08
  3. By: Sudipta Sarangi; Pascal Billand; Christophe Bravard; Jacques Durieu
    Abstract: In this paper we characterize efficient networks for network formation games with global spillovers, that satisfy convexity and sub-modularity properties. This allows us to complete the work of Goyal and Joshi (2006) and Westbrock on collaborative oligopoly networks. In particular, we establish that efficient networks are nested split graphs in this class of games.
  4. By: KIRCHSTEIGER, Georg (Université Libre de Bruxelles, ECARES, B-1050 Brussels, Belgium); MANTOVANI, Marco (Università degli studi di Milano, I-20122 Milano, Italy); MAULEON, Ana (CEREC, Saint-Louis University, Brussels, Belgium; Université catholique de Louvain, CORE, Belgium); VANNETELBOSCH, Vincent (CEREC, Saint-Louis University, Brussels, Belgium; Université catholique de Louvain, CORE, Belgium)
    Abstract: Pairwise stability Jackson and Wolinsky [1996] is the standard stability concept in network formation. It assumes myopic behavior of the agents in the sense that they do not forecast how others might react to their actions. Assuming that agents are perfectly farsighted, related stability concepts have been proposed. We design a simple network formation experiment to test these extreme theories, but find evidence against both of them: the subjects are consistent with an intermediate rule of behavior, which we interpret as a form of limited farsightedness. On aggregate, the selection among multiple pairwise stable networks (and the performance of farsighted stability) crucially depends on the level of farsightedness needed to sustain them, and not on efficiency or cooperative considerations. Individual behavior analysis corroborates this interpretation, and suggests, in general, a low level of farsightedness (around two steps) on the part of the agents.
    Keywords: network formation, experiment, myopic and farsighted stability
    JEL: D85 C91 C92
    Date: 2013–07–09
  5. By: Situngkir, Hokky
    Abstract: Network and graph model is a good alternative to analyze huge collective textual data for the ability to reduce the dimensionality of the data. Texts can be seen as syntactic and semantic network among words and phrases seen as concepts. The model is implemented to observe the proposals of Indonesian innovators for implementation of information technology. From the analysis some interesting insights are outlined.
    Keywords: innovation, semantic map, corpus, complex network, computational linguistics.
    JEL: C8 H8 I2 L0 L00 O3 O31 O53 Y10
    Date: 2013–09–17

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