nep-net New Economics Papers
on Network Economics
Issue of 2014‒01‒24
four papers chosen by
Yi-Nung Yang
Chung Yuan Christian University

  1. Cooperation and competition in markets with network externalities or learning curves By Morasch, Karl
  2. Persistence in corporate networks By Milaković, Mishael; Raddant, Matthias; Birg, Laura
  3. Hierarchicality of Trade Flow Networks Reveals Complexity of Products By Peiteng Shi; Jiang Zhang; Bo Yang; Jingfei Luo
  4. The evolution of networks of innovators within and across borders: Evidence from patent data By Andrea Morescalchi; Fabio Pammolli; Orion Penner; Alexander M. Petersen; Massimo Riccaboni

  1. By: Morasch, Karl
    Abstract: The related phenomena of learning curve and network effects are quite common in oligopolistic markets. In this context the present paper discusses the incentives of a technological leader to share its exclusive technology with potential competitors. An alliance may be preferable because partner firms may be blocked. On the other hand compeition between the alliance partners will be intensied. It is shown that tha alliance solution will be chosen for medium values of learning curve or network effects. In almost all cases where firms decide to form an alliance this well enhance welfare. --
    Keywords: Alliances,Network externalities,Learning curve,Oligopoly
    JEL: L13 D43 L15
    Date: 2013
  2. By: Milaković, Mishael; Raddant, Matthias; Birg, Laura
    Abstract: We examine the bipartite graphs of German corporate boards in 1993, 1999 and 2005, and identify cores of directors who are highly central in the entire network while being densely connected among themselves. The novel feature of this paper is the focus on the dynamics of these networks. Germany's corporate governance has experienced significant changes during this time, and there is substantial turnover in the identity of core members, yet we observe the persistent presence of a network core, which is even robust to changes in the tail distribution of multiple board memberships. Anecdotal evidence suggests that core persistence originates from the board appointment decisions of largely capitalized corporations. --
    Date: 2014
  3. By: Peiteng Shi; Jiang Zhang; Bo Yang; Jingfei Luo
    Abstract: With globalization, countries are more connected than before by trading flows, which currently amount to at least 36 trillion dollars. Interestingly, approximately 30-60 percent of global exports consist of intermediate products. Therefore, the trade flow network of a particular product with high added values can be regarded as a value chain. The problem is weather we can discriminate between these products based on their unique flow network structure. This paper applies the flow analysis method developed in ecology to 638 trading flow networks of different products. We claim that the allometric scaling exponent $\eta$ can be used to characterize the degree of hierarchicality of a flow network, i.e., whether the trading products flow on long hierarchical chains. Then, the flow networks of products with higher added values and complexity, such as machinery&transport equipment with larger exponents, are highlighted. These higher values indicate that their trade flow networks are more hierarchical. As a result, without extra data such as global input-output table, we can identify the product categories with higher complexity and the relative importance of a country in the global value chain solely by the trading network.
    Date: 2014–01
  4. By: Andrea Morescalchi (IMT Lucca Institute for Advanced Studies); Fabio Pammolli (IMT Lucca Institute for Advanced Studies); Orion Penner (IMT Lucca Institute for Advanced Studies); Alexander M. Petersen (IMT Lucca Institute for Advanced Studies); Massimo Riccaboni (IMT Lucca Institute for Advanced Studies)
    Abstract: Recent studies on the geography of knowledge networks have documented a negative impact of physical distance and institutional borders upon research and development (R&D) collaborations. Though it is widely recognized that geographic constraints and national borders impede the diffusion of knowledge, less attention has been devoted to the temporal evolution of these constraints. In this study we use data on patents filed with the European Patent Office (EPO) for OECD countries to analyze the impact of physical distance and country borders on inter-regional links in four different networks over the period 1988-2009: (1) co-inventorship, (2) patent citations, (3) inventor mobility and (4) the location of R&D laboratories. We find the constraint imposed by country borders and distance decreased until mid-1990s then started to grow, particularly for distance. We further investigate the role of large innovation "hubs" as attractors of new collaboration opportunities and the impact of region size and locality on the evolution of cross-border patenting activities. The intensity of European cross-country inventor collaborations increased at a higher pace than their non-European counterparts until 2004, with no significant relative progress thereafter. Moreover, when analyzing networks of geographical mobility, multinational R&D activities and patent citations we cannot detect any substantial progress in European research integration above and beyond the common global trend.
    Keywords: Geography of knowledge, Networks of Innovators, European integration, Spatial proximity, Cross-border collaboration, Gravity model
    JEL: O31 O38 R12 R23 D89
    Date: 2014–01

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