nep-net New Economics Papers
on Network Economics
Issue of 2016‒09‒25
fourteen papers chosen by
Yi-Nung Yang
Chung Yuan Christian University

  1. Investigating the role of mobile network operators as platform providers in the internet of things By Karapantelakis, Athanasios; Markendahl, Jan
  2. Net neutrality principles and its impact on quality of experience based service differentiation in mobile networks By Martínez, Luis; Álvarez San-Jaime, Oscar; Markendahl, Jan
  3. Clustering in Dynamic Causal Networks as a Measure of Systemic Risk on the Euro Zone By Monica Billio; Lorenzo Frattarolo; Hayette Gatfaoui; Philippe De Peretti
  4. An Analysis of Mozambique’s Political and Economic Networks By Andes Chivangue
  5. The effect of sequentiality and heterogeneity in network formation games By Liza Charroin
  6. The specific shapes of gender imbalance in scientific authorships: a network approach By Tanya Araújo; Elsa Fontainha
  7. Internet of things and its future By van den Dam, Rob
  8. Spatial Dependence and Data-Driven Networks of International Banks By Ben Craig; Martín Saldías
  9. Broadband industry structure and cybercrime: An empirical analysis By Gideon, Carolyn; Hogendorn, Christiaan
  10. The potential of big data and telecommunications in the Ebola response By Hellmann, Daniel; Chan, Jennifer; Tapia, Andrea; Maitland, Carleen F.
  11. Crony Capitalism in Mozambique: Evidence from Networks of Politicians and Businessmen By Andes Chivangue
  12. Loss Sequencing in Banking Networks: Threatened Banks as Strategic Dominoes By Tran, Ngoc-Khanh; Vuong, Thao; Zeckhauser, Richard
  13. Networks and Markets By Goyal, S.
  14. Long-Range Growth: Economic Development in the Global Network of Air Links By Filipe Campante; David Yanagizawa-Drott

  1. By: Karapantelakis, Athanasios; Markendahl, Jan
    Abstract: Internet of Things (IoT) is generally understood to be a realisation of the vision of ubiquitous computing, wherein any type of device will be connected to the Internet and will be controlled by remote software. The transition of Information and Communication Technology (ICT) ecosystem towards IoT is set to happen gradually over the next decade, with multiple independent sources predicting at least an order of magnitude increase in data traffic to and from connected devices. In particular, Mobile Network Operators (MNOs) are set to play an instrumental role in the IoT economy of the future, with the emergence of fifth generation mobile networks (5G). The transition to IoT, however, poses multiple challenges for MNOs who have to serve a large market of many industry segments (e.g. utilities, transport, agriculture), while simultaneously face commoditisation of their core services (i.e. voice, messaging and mobile broadband). In order to survive and thrive in the IoT economy, MNOs need to reconsider their role by repositioning themselves in the value chain. This paper, inspired from platform economics and successful examples of multi-sided platforms in the Information Technology (IT) industry, suggests a role of MNOs as mediators in a multi-sided market, connecting billions of devices on one end of the market with software providers on another end. The value of this idea is discussed by presentation of several prototypes that utilise MNO as a service provider
    Date: 2015
  2. By: Martínez, Luis; Álvarez San-Jaime, Oscar; Markendahl, Jan
    Abstract: The overall goal of the incorporation of QoE in the mobile networks deployment is related to optimizing end-user QoE, while making efficient use of network resources and maintaining a satisfied customer base that guarantees the commercial success of the provider's business model. However, the implementation of a QoE-based approach at the service provision, with the potential deployment of fast lanes for premium users, the prioritization of traffic, or the creation of user's categories, may affect the Net Neutrality principles. This paper presents an analysis of how the net neutrality principles will impact the implementation of QoE-based differentiation in the service provision at technical, business and market levels. We introduce a business model framed in the QoE-based differentiation approach analysing the implications of Net Neutrality in the proposed models.
    Keywords: Quality of Experience,Net Neutrality,Mobile Networks
    Date: 2015
  3. By: Monica Billio (Università Ca' Foscari of Venice - Department of Economics); Lorenzo Frattarolo (Università Ca' Foscari of Venice - Department of Economics); Hayette Gatfaoui (IESEG - School of Management (LEM), CES - Centre d'économie de la Sorbonne - UP1 - Université Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique); Philippe De Peretti (CES - Centre d'économie de la Sorbonne - UP1 - Université Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique)
    Abstract: In this paper, we analyze the dynamic relationships between ten stock exchanges of the euro zone using Granger causal networks. Using returns for which we allow the variance to follow a Markov-Switching GARCH or a Changing-Point GARCH, we first show that over different periods, the topology of the network is highly unstable. In particular, over very recent years, dynamic relationships vanish. Then, expanding on this idea, we analyze patterns of information transmission. Using rolling windows to analyze the topologies of the network in terms of clustering, we show that the nodes' state changes continually, and that the system exhibits a high degree of flickering in information transmission. During periods of flickering, the system also exhibits desynchronization in the information transmission process. These periods do precede tipping points or phase transitions on the market, especially before the global financial crisis, and can thus be used as early warnings of phase transitions. To our knowledge, this is the first time that flickering clusters are identified on financial markets, and that flickering is related to phase transitions.
    Keywords: Causal Network,Topology,Clustering,Flickering,Desynchronisation,Phase transitions
    Date: 2016–05
  4. By: Andes Chivangue
    Abstract: This paper analyses the social networks existing among politicians and economists in contemporary Mozambique, using the SNA-Social Networks Analysis method to identify the links between these individuals, to discern their relationships and to measure both the density and the centrality of the political - business network. Mozambique’s political and business elite is thus identified. A network sociogram is presented identifying the individual position in the network and the linkages among these individuals and several positional metrics of the individuals in the network are estimated, allowing identifying each individual and its influence in the network. As this network is resource accumulation driven, this exercise permits to identify the main political and economic individual active in Mozambique economy. President Guebuza define the major network centre and other individuals, Joaquim Chissano, the former president, and Graça Machel, the widow of another former president. Policy implications are derived and the links between them displayed, allowing for an accurate view of Mozambique’s political and business world.
    Keywords: Mozambique, economy, politics
    Date: 2015–09
  5. By: Liza Charroin (Univ Lyon, ENS de Lyon, GATE L-SE UMR 5824, F-69342 Lyon, France)
    Abstract: In the benchmark model of Bala and Goyal (2000) on network formation, the equilibrium network is asymmetric and unfair as agents have different payoffs. While they are prominent in reality, asymmetric networks do not emerge in the lab mainly because of fairness concerns. We extend this model with a sequential linking decision process to ease coordination and with heterogeneous agents. Heterogeneity is introduced with the presence of a special agent who has either a higher monetary value or a different status. The equilibrium is asymmetric and unfair. Our experimental results show that thanks to sequentiality and fairness concerns, individuals coordinate on fair and efficient networks in homogeneous settings. Heterogeneity impacts the network formation process by increasing the asymmetry of networks but does not decrease the level of fairness nor efficiency
    Keywords: Network formation, sequentiality, heterogeneity, fairness, asymmetry
    JEL: C72 C92 D85 Z13
    Date: 2016
  6. By: Tanya Araújo; Elsa Fontainha
    Abstract: Gender differences in collaborative research have received little attention when compared with the growing importance that women hold in academia and research. Unsurprisingly, most of bibliometric databases have a strong lack of directly available information by gender. Although empirical-based network approaches are often used in the study of research collaboration, the studies about the influence of gender dissimilarities on the resulting topological outcomes are still scarce. Here, networks of scientific subjects are used to characterize patterns that might be associated to five categories of authorships which were built based on gender. We find enough evidence that gender imbalance in scientific authorships brings a peculiar trait to the networks induced from papers published in Web of Science (WoS) indexed journals of Economics over the period 2010-2015 and having at least one author affiliated to a Portuguese institution. Our results show the emergence of a specific pattern when the network of co-occurring subjects is induced from a set of papers exclusively authored by men. Such a male-exclusive authorship condition is found to be the solely responsible for the emergence that particular shape in the network structure. This peculiar trait might facilitate future network analyses of research collaboration and interdisciplinarity. Key Words : co-occurrence networks, gender, research collaboration, interdisciplinarity, bibliometrics, minimum spanning tree
    Date: 2016–09
  7. By: van den Dam, Rob
    Abstract: IBM Internet of Things (IoT) research focuses on three components to address the multiple challenges of a scalable, secure and efficient IoT: Technology strategy, business and economic insights, and product and user experience design. By merging these three streams of research, IBM developed a tangible vision of the connected future and findings that can guide executives in making strategic IoT decisions and investments. As the IoT scales exponentially, decentralized networks have the potential to reduce infrastructure and maintenance costs to manufacturers. Decentralization also promise increased robustness by removing single points of failure that could exists in traditional centralized networks. By shifting the power in the network from the center to the edges, devices gain greater autonomy and can become points of transactions and economic value creation for owners and users.
    Keywords: Internet of Things,ecosystems,Economy of Thing,big data,security
    Date: 2015
  8. By: Ben Craig; Martín Saldías
    Abstract: This paper computes data-driven correlation networks based on the stock returns of international banks and conducts a comprehensive analysis of their topological properties. We first apply spatial-dependence methods to filter the effects of strong common factors and a thresholding procedure to select the significant bilateral correlations. The analysis of topological characteristics of the resulting correlation networks shows many common features that have been documented in the recent literature but were obtained with private information on banks' exposures, including rich and hierarchical structures, based on but not limited to geographical proximity, small world features, regional homophily, and a core-periphery structure.
    Keywords: International banks;International banking;Econometric models;Time series;Network analysis, spatial dependence, banking.
    Date: 2016–09–15
  9. By: Gideon, Carolyn; Hogendorn, Christiaan
    Abstract: Prior studies have shown that while ISPs are well positioned to provide residential and SME users critical protection from cybercrime, their incentives to do so are often insufficient. The presence of competition in providing broadband service is a factor we might expect to impact such incentives as shown in prior theoretical work. We test this finding using data consisting of intrusion attempts on residential networks obtained using honeypot sensors. We compare the frequency and nature of attack attempts found on networks served by ISPs that are monopolists with those that face competition. We also place sensors on servers to identify the IP addresses of the infected machines that conduct these attacks in order to analyze the infection rates of residential ISP networks.
    Date: 2015
  10. By: Hellmann, Daniel; Chan, Jennifer; Tapia, Andrea; Maitland, Carleen F.
    Abstract: Telecommunications infrastructure plays a critical role in crisis response, whether in natural disasters or health crises such as the West African Ebola response. For these latter cases, where infrastructure damage is not a problem, the crisis generates increased demands on systems already plagued by sparse coverage and limited bandwidth. Recently, the potential benefits of big data analytics has increased the demands on these networks. In turn, this generates pressure on the network operators to upgrade facilities and may present opportunities for third party support. If designed properly, these improvements may create network improvements that persist beyond the crisis. This article examines the dampening effect of network infrastructure on data sharing and its effects for the promise of 'Big Data' as well as the role of third party organizations, namely humanitarian organizations and their private sector and donor partners, in enhancing network capacity. Through a case study of the West African Ebola response, we specify the network infrastructure limitations as well as collaborative efforts at improving infrastructure for the response and the long term. The research sheds light on the role crisis telecommunications can play in enhancing infrastructure, building a bridge between disaster and development efforts and associated scholarship [1]-[4]. The research also provides recommendations as to mechanisms regulators might use to foster collaboration and ease the path for humanitarian organizations seeking to solve long standing network problems, even if only to meet short term needs.
    Date: 2015
  11. By: Andes Chivangue
    Abstract: This paper discusses crony capitalism in Mozambique, by analysing the social networks that exist among political and economic players, using the SNA Social Networks Analysis method. The variables are selected to identify cliques and the covariates that explain this network relationship are taken into account, namely military, ethnicity, family, politics, business, entrepreneurship, political party and gender. Policy implications are derived.
    Keywords: Mozambique, social networks, crony capitalism, multivariate analysis, policy implications
    Date: 2015–07
  12. By: Tran, Ngoc-Khanh (Washington University in St Louis); Vuong, Thao (Washington University in St Louis); Zeckhauser, Richard (Harvard U)
    Abstract: We demonstrate in a stylized banking network that a single large loss has the potential to leave markedly different impacts on the financial system than does a sequence of moderate losses of the same cumulative magnitude. Loss sequencing matters because banks make strategic bailout decisions based on their myopic assessment of losses, yet these decisions are highly consequential to subsequent decisions and eventual losses at other banks in the network. In particular, the network mechanism enables banks to choose to bail out their creditors after every moderate loss incurred in a sequence, while walking away from the creditors should they experience a single large loss. Government policy can force threatened banks to liquidate or sell themselves or, at the opposite pole, can bail out some such banks or overlook their threatened status. The former policy would concentrate a string of losses into a single large event; the latter could prevent a massive single loss at the expense of multiple subsequent smaller losses. As this analysis shows, either policy could prove optimal depending on identifiable circumstances. These findings have important implications for on-going policy debates that emanated from the 2008 meltdown.
    JEL: G01 G21 G28 G33
    Date: 2016–08
  13. By: Goyal, S.
    Abstract: Networks influence human behavior and well being, and realizing this, individuals make conscious efforts to shape their own networks. Over the past decade, economists have combined these ideas with concepts from game theory, oligopoly, general equilibrium, and information economics to develop a general framework of analysis. The ensuing research has deepened our understanding of classical questions in economics and opened up entirely new lines of enquiry.
    Date: 2016–09–12
  14. By: Filipe Campante; David Yanagizawa-Drott
    Abstract: We study the impact of international long-distance flights on the global spatial allocation of economic activity. To identify causal effects, we exploit variation due to regulatory and technological constraints which give rise to a discontinuity in connectedness between cities at a distance of 6000 miles. We show that these air links have a positive effect on local economic activity, as captured by satellite-measured night lights. To shed light on how air links shape economic outcomes, we first present evidence of positive externalities in the global network of air links: connections induce further connections. We then find that air links increase business links, showing that the movement of people fosters the movement of capital. In particular, this is driven mostly by capital flowing from high-income to middle-income (but not low-income) countries. Taken together, our results suggest that increasing interconnectedness generates economic activity at the local level by inducing links between businesses, but also gives rise to increased spatial inequality locally, and potentially globally.
    JEL: F15 F21 F23 F63 O11 O18 O19 O47 R11 R12 R40
    Date: 2016–09

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