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on Network Economics |
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Issue of 2018‒07‒09
four papers chosen by Pedro CL Souza Pontifícia Universidade Católica do Rio de Janeiro |
| By: | Konstantin Buechel, Maximilian von Ehrlich |
| Abstract: | Social interactions are considered pivotal to urban agglomeration forces. This study employs a unique dataset on mobile phone calls to examine how social interactions differ across cities and peripheral areas. We first show that geographical distance is highly detrimental to interpersonal exchange. We then reveal that individuals residing in high-density locations do not benefit from larger social networks, but from a more efficient structure in terms of higher matching quality and lower clustering. These results are derived from two complementary approaches: Based on a link formation model, we examine how geographical distance, network overlap, and sociodemographic (dis)similarities impact the likelihood that two agents interact. We further decompose the effects from individual, location, and time specific determinants on micro-level network measures by exploiting information on mobile phone users who change their place of residence. |
| Keywords: | Social Interactions; Agglomeration Externalities; Network Analysis; Sorting |
| JEL: | R1 R23 Z13 D85 |
| Date: | 2016–12 |
| URL: | http://d.repec.org/n?u=RePEc:rdv:wpaper:credresearchpaper13&r=net |
| By: | Anton Kolotilin (School of Economics, UNSW Business School); Valentyn Panchenko (School of Economics, UNSW Business School) |
| Abstract: | Growing evidence suggests that many social and economic networks are scale free in that their degree distribution has a power-law tail. A common explanation for this phenomenon is a random network formation process with preferential attachment. For a general version of such a process, we develop the pseudo maximum likelihood and generalized method of moments estimators. We prove consistency of these estimators by establishing the law of large numbers for growing networks. Simulations suggest that these estimators are asymptotically normally distributed and outperform the commonly used non-linear least squares and Hill (1975) estimators in finite samples. We apply our estimation methodology to a co-authorship network. |
| Keywords: | law of large numbers, consistency, degree distribution, scale-free network |
| JEL: | C15 C45 C51 D85 |
| Date: | 2018–06 |
| URL: | http://d.repec.org/n?u=RePEc:swe:wpaper:2018-10&r=net |
| By: | Jing Cai; Adam Szeidl |
| Abstract: | We organized business associations for the owner-managers of young Chinese firms to study the effect of business networks on firm performance. We randomized 2,820 firms into small groups whose managers held monthly meetings for one year, and into a “no-meetings” control group. We find that: (1) The meetings increased firm revenue by 8.1 percent, and also significantly increased profit, factors, inputs, the number of partners, borrowing, and a management score; (2) These effects persisted one year after the conclusion of the meetings; and (3) Firms randomized to have better peers exhibited higher growth. We exploit additional interventions to document concrete channels. (4) Managers shared exogenous business-relevant information, particularly when they were not competitors, showing that the meetings facilitated learning from peers. (5) Managers created more business partnerships in the regular than in other one-time meetings, showing that the meetings improved supplier-client matching. |
| Date: | 2017–11–21 |
| URL: | http://d.repec.org/n?u=RePEc:ceu:econwp:2018_3&r=net |
| By: | Catia Batista; Pedro Vicente; Marcel Fafchamps |
| Abstract: | In this paper, we study information sharing through text messages among rural Mozambicans with access to mobile money. For this purpose, we conducted a lab-in-the-field experiment involving exogeneously assigned information links. In the base game mobile money users receive an SMS containing information on how to redeem a voucher for mobile money. They are then given an opportunity to share this information with other subjects. We find that participants have a low propensity to redeem the voucher. They nonetheless share the information with others, and many subjects share information they do not use themselves, consistent with warm glow. We observe that there is more information sharing when communication is entirely anonymous, and we uncover no evidence of homophily in information sharing. We introduce various treatments: varying the cost of information sharing; being shamed for not sending vouchers; and allowing subjects to appropriate (part of) the value of the shared information. All these treatments decrease information sharing. The main implication is that, to encourage information sharing, the best is to keep it simple. |
| Keywords: | Information, lab-in-the-field experiment, mobile money, Mozambique, NOVAFRICA, social networks |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:unl:novafr:wp1801&r=net |