nep-net New Economics Papers
on Network Economics
Issue of 2017‒10‒22
four papers chosen by
Pedro CL Souza
Pontifícia Universidade Católica do Rio de Janeiro

  1. Dealer Networks in the World of Art By Dakshina Garfield De Silva; Marina Gertsberg; Georgia Kosmopoulou; Rachel Pownall
  2. Social Media and the News Industry By Alexandre de Corniere; Miklos Sarvary
  3. Sibling Spillovers By Sandra E. Black; Sanni Breining; David N. Figlio; Jonathan Guryan; Krzysztof Karbownik; Helena Skyt Nielsen; Jeffrey Roth; Marianne Simonsen
  4. Commodity connectedness By Diebold, Francis X.; Liu, Laura; Yilmaz, Kamil

  1. By: Dakshina Garfield De Silva; Marina Gertsberg; Georgia Kosmopoulou; Rachel Pownall
    Abstract: We apply network theory to study auction outcomes in the fine art market. Using a unique historical data set, of London-based art auctions that took place between 1741 and 1913, we investigate the drivers of strategic network formation between dealers (buyers) and sellers and the effect of network structure on artwork prices and market exit. The network size and similarities in art specialization between trading partners strongly influence the decision to form links. A larger network and a higher degree of specialization exacerbate informational asymmetries across buyers leading to higher rents through lower prices and facilitate longer market presence.
    Keywords: Auctions, Art Dealers, Networks
    JEL: D44 D82 L14
    Date: 2017
  2. By: Alexandre de Corniere (Toulouse School of Economics, France); Miklos Sarvary (Columbia Business School, USA)
    Abstract: The growing influence of internet platforms acting as content aggregators is one of the most important challenges facing the media industry. We develop a parsimonious model to understand the impact of content bundling by a social platform. In our model consumers can access news either directly through a newspaper's website, or indirectly through a platform, which also offers social content. Even though the platform shares revenues with newspapers whose content it publishes, content bundling harms newspapers. Its effect on news quality and news consumption depends on the media market structure and on whether the platform can personalize the content bundle.
    Keywords: User-Generated Content (UGC), Media Competition, News Quality
    JEL: L13 L43 L96
    Date: 2017–10
  3. By: Sandra E. Black; Sanni Breining; David N. Figlio; Jonathan Guryan; Krzysztof Karbownik; Helena Skyt Nielsen; Jeffrey Roth; Marianne Simonsen
    Abstract: It is notoriously difficult to identify peer effects within the family, because of the common shocks and reflection problems. We make use of a novel identification strategy and unique data in order to gain some purchase on this problem. We employ data from the universe of children born in Florida between 1994 and 2002 and in Denmark between 1990 and 2001, which we match to school and medical records. To address the identification problem, we examine the effects of having a sibling with a disability. Utilizing three-plus-child families, we employ a differences-in-differences research design which makes use of the fact that birth order influences the amount of time which a child spends in early childhood with their siblings, disabled or not. We observe consistent evidence in both locations that the second child in a family is differentially affected when the third child is disabled. We also provide evidence which suggests that the sibling spillovers are working at least in part through the relative exposure to parental time and financial resources.
    Keywords: sibling spillovers, child care, sibling fixed effects
    JEL: I00 J13
    Date: 2017
  4. By: Diebold, Francis X.; Liu, Laura; Yilmaz, Kamil
    Abstract: We use variance decompositions from high-dimensional vector autoregressions to characterize connectedness in 19 key commodity return volatilities, 2011-2016. We study both static (full-sample) and dynamic (rolling-sample) connectedness. We summarize and visualize the results using tools from network analysis. The results reveal clear clustering of commodities into groups that match traditional industry groupings, but with some notable differences. The energy sector is most important in terms of sending shocks to others, and energy, industrial metals, and precious metals are themselves tightly connected.
    Keywords: network centrality,network visualization,pairwise connectedness,total directional connectedness,total connectedness,vector autoregression,variance decomposition,LASSO
    JEL: G1 C3
    Date: 2017

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