nep-net New Economics Papers
on Network Economics
Issue of 2016‒11‒06
seven papers chosen by
Pedro CL Souza
Pontifícia Universidade Católica do Rio de Janeiro

  1. Innovation Network By Daron Acemoglu; Ufuk Akcigit; William Kerr
  2. A degree-distance-based connections model with negative and positive externalities By Philipp Moehlmeier; Agnieszka Rusinowska; Emily Tanimura
  3. Bad Company: Reconciling Negative Peer E ects in College Achievement By Ryan R. Brady; Michael Insler; Ahmed S. Rahman
  4. The Impact of Family Composition on Educational Achievement By Stacey H. Chen; Yen-Chien Chen; Jin-Tan Liu
  5. Price Competition in the Presence of a Web Aggregator By Oksana Loginova; Andrea Mantovani
  6. Optimal Monetary Policy when Information is Market-Generated By Isabella Blengini; Kenza Benhima
  7. The French Aerospace Sector Collaboration Network : Structural Dynamics And Firm Performance By Johannes VAN DER POL

  1. By: Daron Acemoglu; Ufuk Akcigit; William Kerr
    Abstract: Technological progress builds upon itself, with the expansion of invention in one domain propelling future work in linked fields. Our analysis uses 1.8 million U.S. patents and their citation properties to map the innovation network and its strength. Past innovation network structures are calculated using citation patterns across technology classes during 1975-1994. The interaction of this pre-existing network structure with patent growth in upstream technology fields has strong predictive power on future innovation after 1995. This pattern is consistent with the idea that when there is more past upstream innovation for a particular technology class to build on, then that technology class innovates more.
    JEL: D85 O31 O32 O33 O34
    Date: 2016–10
  2. By: Philipp Moehlmeier (Bielefeld University); Agnieszka Rusinowska (CES - Centre d'économie de la Sorbonne - UP1 - Université Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique, PSE - Paris School of Economics); Emily Tanimura (CES - Centre d'économie de la Sorbonne - UP1 - Université Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique)
    Abstract: We develop a modification of the connections model by Jackson and Wolinsky (1996) that takes into account negative externalities arising from the connectivity of direct and indirect neighbors, thus combining aspects of the connections model and the co-author model. We consider a general functional form for agents' utility that incorporates both the effects of distance and of neighbors' degree. Consequently, we introduce a framework that can be seen as a degree-distance-based connections model with both negative and positive externalities. Our analysis shows how the introduction of negative externalities modifies certain results about stability and efficiency compared to the original connections model. In particular, we see the emergence of new stable structures, such as a star with links between peripheral nodes. We also identify structures, for example, certain disconnected networks, that are efficient in our model but which could not be efficient in the original connections model. While our results are proved for the general utility function, some of them are illustrated by using a specific functional form of the degree-distance-based utility.
    Keywords: network, externality, degree, distance, connections model
    Date: 2016
  3. By: Ryan R. Brady (United States Naval Academy); Michael Insler (United States Naval Academy); Ahmed S. Rahman (United States Naval Academy)
    Abstract: Existing peer e ects studies produce contradictory findings, including positive, negative, large, and small effects, despite similar contexts. We reconcile these results using U.S. Naval Academy data covering a 22-year history of the random assignment of students to peer groups. Coupled with students' limited discretion over freshman-year courses, our setting affords an opportunity to better understand peer effects in different social networks. We find negative effects at the broader "company" level--students' social and residential group--and positive effects at the narrower course-company level. We suggest that peer spillovers change direction because of differences in the underlying mechanism of peer infl uence.
    Date: 2016–04
  4. By: Stacey H. Chen (National Graduate Institute for Policy Studies); Yen-Chien Chen (National Chi-Nan University, Taiwan); Jin-Tan Liu (National Taiwan University and NBER)
    Abstract: Parents preferring sons tend to go on to have more children until a boy is born, and to concentrate investment in boys for a given number of children (sibsize). Thus, having a brother may affect child education in two ways: an indirect effect by keeping sibsize lower and a direct rivalry effect where sibsize remains constant. We estimate the direct and indirect effects of a next brother on the first child fs education conditional on potential sibsize. We address endogenous sibsize using twins. We find new evidence of sibling rivalry and gender bias that cannot be detected by conventional methods.
    Date: 2016–10
  5. By: Oksana Loginova (Department of Economics, University of Missouri); Andrea Mantovani (Department of Economics, University of Bologna)
    Abstract: In this paper we examine the impact of a web aggregator on firms and consumers in a horizontally differentiated market. When a firm pays a fee to be listed on the aggregator's website, its location and price become observable to e-users (consumers who visit the website). We consider two settings, depending on the possibility for online firms to offer discounts to e-users. In equilibrium, not all firms will go online - some will choose to remain offline. Online firms attract more customers due to reduced mismatch costs, but face a tougher price competition. When the proportion of e-users is relatively low, price discrimination may hurt the firms. Therefore, less of them can afford to go online. The opposite holds when e-users predominate; price discrimination yields a higher number of online restaurants than uniform pricing. Finally, we evaluate the aggregator's optimal policy regarding the fee and whether to impose uniform pricing or to allow price discrimination. We discover that, unless the proportion of e-users is relatively low, the aggregator induces only a few restaurants to go online.
    Keywords: online reviews aggregators, price discrimination, competition
    JEL: C72 D43 D61 L11 L13 M31
    Date: 2015–03–12
  6. By: Isabella Blengini (Ecole hôtelière de Lausanne); Kenza Benhima (University of Lausanne (HEC))
    Abstract: In this paper we study how the endogenous nature of the signals ob- served by the private sector affects optimal monetary policy. Agents learn from sources of information that are not market-determined, such as news, but also from variables that are endogenously determined on the markets, such as prices or production. In that case, how can the central optimally condition its monetary instrument on its information? When signals re- ceived by private agents are purely exogenous, it is optimal for the central bank to directly steer the economy towards the efficient allocation. This can be achieved through a price stabilization objective. In this case the public does not need to infer the state of the economy and the central bank is in charge of all the action. When information is endogenous, the policy of the central bank is aimed at maximizing the information content of the market-determined variables that agents use as sources of information. This is achieved by exacerbating the natural response of prices to shocks. This result holds independently of the possibility of the central bank to directly communicate its information through public announcements.
    Date: 2016
  7. By: Johannes VAN DER POL
    Abstract: The focus of this paper is on the link between network structure and the financial performance of the individual firm. Under the hypothesis that firms access diverse and valuable knowledge through collaboration we analyse how firms pick their collaborators and how knowledge flows impact the financial performance of the firm. \r\nFirst, the evolution of the structure of the collaboration network of the French aerospace sector is analysed between 1980 and 2013. The global structure is identified and, using an ERGM and clustering identification, the structure of the network is explained. Second, a panel regression identifies a link between the position of the individual firm inside the network and their financial performance.
    Keywords: Network analysis ; Innovation network ; ERGM ; Performance ; Small World ; Scale-free
    JEL: L25 C23 D85 L14 C20
    Date: 2016

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