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on Network Economics |
| By: | Ryohei Hisano (The University of Tokyo); Tsutomu Watanabe (The University of Tokyo); Takayuki Mizuno (National Institute of Informatics); Takaaki Ohnishi (The University of Tokyo); Didier Sornette (Swiss Federal Institute of Technology) |
| Abstract: | Buyer-seller relationships among firms can be regarded as a longi- tudinal network in which the connectivity pattern evolves as each firm receives productivity shocks. Based on a data set describing the evolu- tion of buyer-seller links among 55,608 firms over a decade and structural equation modeling, we find some evidence that interfirm networks evolve reflecting a firm's local decisions to mitigate adverse effects from neigh- bor firms through interfirm linkage, while enjoying positive effects from them. As a result, link renewal tends to have a positive impact on the growth rates of firms. We also investigate the role of networks in aggregate fluctuations. |
| Date: | 2016–08 |
| URL: | http://d.repec.org/n?u=RePEc:cfi:fseres:cf389&r=net |
| By: | Matthew O. Jackson; Brian W. Rogers; Yves Zenou |
| Abstract: | We discuss social network analysis from the perspective of economics. We organize the presentaion around the theme of externalities: the effects that one's behavior has on others' well-being. Externalities underlie the interdependencies that make networks interesting. We discuss network formation, as well as interactions between peoples' behaviors within a given network, and the implications in a variety of settings. Finally, we highlight some empirical challenges inherent in the statistical analysis of network-based data. |
| Date: | 2016–08 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:1608.07901&r=net |
| By: | van der Leij, M. (University of Amsterdam); in 't Veld, D. (University of Amsterdam); Hommes, C.H. (University of Amsterdam) |
| Abstract: | Recent empirical evidence suggests that financial networks exhibit a core-periphery network structure. This paper aims at giving an explanation for the emergence of such a structure using network formation theory. We propose a simple model of the overnight interbank lending market, in which banks compete for intermediation benfits. Focusing on the role of bank heterogeneity, we find that a core-periphery network cannot be unilaterally stable when banks are homogeneous. A core-periphery network structure can form endogenously, however, if we allow for heterogeneity among banks in size. Moreover, size heterogeneity may arise endogenously if payoffs feed back into bank size. |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:ams:ndfwpp:16-07&r=net |
| By: | Jackson, Matthew O.; Rogers, Brian; Zenou, Yves |
| Abstract: | We discuss social network analysis from the perspective of economics. We organize the presentation around the theme of externalities: the effects that one's behavior has on others' welfare. Externalities underlie the interdependencies that make networks interesting to social scientists. We discuss network formation, as well as interactions between peoples' behaviors within a given network, and the implications in a variety of settings. Finally, we highlight some empirical challenges inherent in the statistical analysis of network-based data. |
| Keywords: | economic networks; externalities; Game theory; network formation; network games; Networks; peer effects; Social Networks |
| JEL: | C72 D85 L14 Z13 |
| Date: | 2016–08 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:11452&r=net |
| By: | Bekiros, Stelios; Nguyen, Duc Khuong; Sandoval Junior, Leonidas; Salah Uddin, Gazi |
| Abstract: | This paper investigates the dynamic causal linkages among U.S. equity and commodity futures markets via the utilization of complex network theory. We make use of rolling estimations of extended matrices and time-varying network topologies to reveal the temporal dimension of correlation and entropy relationships. A simulation analysis using randomized time series is also implemented to assess the impact of de-noising on the data dependence structure. We mainly show evidence of emphasized disparity of correlation and entropy-based centrality measurements for all markets between pre- and post-crisis periods. Our results enable the robust mapping of network influences and contagion effects whilst incorporating agent expectations. |
| Keywords: | Finance; commodity markets; correlation; transfer entropy; complex network; centrality |
| JEL: | G1 G15 |
| Date: | 2015–09 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:73397&r=net |
| By: | Bertschek, Irene; Briglauer, Wolfgang; Hüschelrath, Kai; Kauf, Benedikt; Niebel, Thomas |
| Abstract: | We provide a structured overview of the quantitative literature on the economic impacts of telecommunications networks and broadband internet. Differentiating between wireline and wireless technologies as well as broadband availability and broadband adoption, respectively, we review studies investigating the impacts on economic growth, employment and regional development as well as productivity and firm performance. Eventually, the survey does not only allow the identification of main research gaps but also provides useful information for policy makers on the significance and importance of communication networks for social welfare. |
| Keywords: | Telecommunications,Broadband,Economic Growth,Employment,Regional Development,Productivity |
| JEL: | D24 J23 J24 L96 O33 O47 |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewdip:16056&r=net |
| By: | Mili Naskar (Indira Gandhi Institute of Development Research); Rupayan Pal (Indira Gandhi Institute of Development Research) |
| Abstract: | This paper examines the implication of the nature of competition in a market with network externalities on strategic investment in process R&D by firms. It shows that network externalities have a positive effect on process R&D, regardless of the nature of product market competition; but, that effect is larger under Bertrand competition than under Cournot competition. If network externalities are sufficiently strong, regardless of the degree of product differentiation, Bertrand firms have a stronger incentive for process R&D than Cournot firms. Otherwise, if network externalities are not sufficiently strong, the higher the degree of product differentiation, the greater is the possibility of Bertrand R&D to be higher than Cournot R&D. |
| Keywords: | Process R&D, Network Externalities, Cournot, Bertrand, Product Differentiation |
| JEL: | L13 D43 O31 |
| Date: | 2016–07 |
| URL: | http://d.repec.org/n?u=RePEc:ind:igiwpp:2016-020&r=net |
| By: | Buer, Tobias; Haass, Rasmus |
| Abstract: | Cooperation in the ocean liner shipping industry has always been important to improve liner shipping networks (LSN's). As tight cooperations like alliances are challenged by antitrust laws, looser forms of cooperation among liner carriers might become a reasonable way to increase efficiency of LSN's. Our goal is to facilitate a loose form of cooperation among liner carriers. Therefore, we introduce a coordination mechanism for designing a collaborative LSN based on a multi round combinatorial auction. Via the auction, carriers exchange demand triplets, i.e. orders which describe the transport of containers between ports. A standard network design problem which includes ship scheduling and cargo routing decisions is used as isolated network design problem of an individual carrier. A carrier has to solve this isolated problem repeatedly during the auction so that the carrier is able to decide which demand triplets to sell, on which demand triplets to bid, and what prices to charge. To solve these problems we propose a variable neighborhood search based matheuristic. The matheuristic addresses the isolated planning problem in four phases (construct ship cycles, modify cycles, determine container flow, and reallocate ships to cycles). Our computational experiments on a set of 56 synthetic test instances suggest that the introduced combinatorial auction increases profits on average compared to isolated planning significantly by four percent. The more diverse the original assignment of demand triplets and ships to carriers is, the higher the potential for collaboration; for 18 diverse instances, the profits increase on average by ten percent. |
| Keywords: | liner shipping,network design,combinatorial auction,bundle bidding,collaborative planning,variable neighborhood search |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:bclgwp:6&r=net |
| By: | Prema-chandra Athukorala; John Ravenhill |
| Abstract: | This paper examines the implications of the evolving role of China in East-Asia centred global production networks for regional and global integration of the Chinese economy. The main focus is on the ‘decoupling’ thesis, the notion that China’s rise has been instrumental in reshaping the East-Asian region as a self-contained economic entity with potential for maintaining growth dynamism independent of the developed economies. The analysis is based on a new dataset that permits delineating the role of the other East Asian countries as suppliers of parts and components for assembly bases in China and China’s dependence on third-country markets. We find that China’s reliance on East Asian neighbours for parts and component supply has significantly declined in recent years, reflecting deepening of China’s engagement in production networks. China is also emerging as a significant supplier of parts and components within global production networks. There has been a notable geographic diversification of China’s assembly exports with a significant increase in the shares of extra-regional developing countries, but Western countries still absorb a sizeable share. |
| Keywords: | China, global production networks, trade patterns, decoupling thesis |
| JEL: | F11 F14 F23 M16 |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:pas:papers:2016-12&r=net |
| By: | Bryan S. Graham |
| Abstract: | Residential segregation by race and income are enduring features of urban America. Understanding the effects of residential segregation on educational attainment, labor market outcomes, criminal activity and other outcomes has been a leading project of the social sciences for over half a century. This paper describes techniques for measuring the effects of neighborhood of residence on long run life outcomes. |
| JEL: | C23 J01 J1 R23 |
| Date: | 2016–08 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:22575&r=net |