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on Network Economics |
| By: | Simone Alfarano; Albert Banal-Estañol; Eva Camacho; Giulia Iori; Burcu Kapar; Rohit Rahi |
| Abstract: | We consider a setting in which privately informed agents are located in a network and trade a risky asset with other agents with whom they are directly connected. We compare the performance, both theoretically and experimentally, of a complete network (centralized market) to incomplete networks with differing levels of connectivity (decentralized markets). We show that decentralized markets can deliver higher informational efficiency, with prices closer to fundamentals, as well as higher welfare for mean-variance investors. |
| Keywords: | Networks, heuristic learning, informational efficiency, experimental asset markets |
| JEL: | C92 D82 G14 |
| Date: | 2024–01 |
| URL: | http://d.repec.org/n?u=RePEc:bge:wpaper:1420&r=net |
| By: | Joonkyung Yoo |
| Abstract: | Given a player is guaranteed the same payoff for each delivery path in a single-cube delivery network, the player's best response is to randomly divide all goods and deliver them to all other nodes, and the best response satisfies the Kuhn-Tucker condition. The state of the delivery network is randomly complete. If congestion costs are introduced to the player's maximization problem in a multi-cubic delivery network, the congestion paradox arises where all coordinates become congested as long as the previous assumptions about payoffs are maintained. |
| Date: | 2024–01 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2401.00940&r=net |
| By: | Geoff Boeing; Clemens Pilgram; Yougeng Lu |
| Abstract: | This study estimates the relationships between street network characteristics and transport-sector CO2 emissions across every urban area in the world and investigates whether they are the same across development levels and urban design paradigms. The prior literature has estimated relationships between street network design and transport emissions -- including greenhouse gases implicated in climate change -- primarily through case studies focusing on certain world regions or relatively small samples of cities, complicating generalizability and applicability for evidence-informed practice. Our worldwide study finds that straighter, more-connected, and less-overbuilt street networks are associated with lower transport emissions, all else equal. Importantly, these relationships vary across development levels and design paradigms -- yet most prior literature reports findings from urban areas that are outliers by global standards. Planners need a better empirical base for evidence-informed practice in under-studied regions, particularly the rapidly urbanizing Global South. |
| Date: | 2024–01 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2401.01411&r=net |
| By: | Berliant, Marcus |
| Abstract: | We examine the fine microstructure of commuting in a game-theoretic setting with a continuum of commuters. Commuters' home and work locations can be heterogeneous. A commuter transport network is exogenous. Traffic speed is determined by link capacity and by local congestion at a time and place along a link, where local congestion at a time and place is endogenous. The model can be reinterpreted to apply to congestion on the internet. We find sufficient conditions for existence of equilibrium, that multiple equilibria are ubiquitous, and that the welfare properties of morning and evening commute equilibria differ on a generalization of a directed tree. |
| Keywords: | Commuting; Internet traffic; Congestion externality; Efficient Nash equilibrium |
| JEL: | L86 R41 |
| Date: | 2023–12–27 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:119590&r=net |
| By: | Albert Cohen; Jimmy Risk |
| Abstract: | This paper presents a new framework for player valuation in European football by fusing principles from financial mathematics and network theory. The valuation model leverages a "passing matrix" to encapsulate player interactions on the field, utilizing centrality measures to quantify individual influence. Unlike traditional approaches, this model is both metric-driven and cohort-free, providing a dynamic and individualized framework for ascertaining a player's fair market value. The methodology is empirically validated through a case study in European football, employing real-world match and financial data. The paper advances the disciplines of sports analytics and financial mathematics by offering a cross-disciplinary mechanism for player valuation, and also links together two well-known econometric methods in marginal revenue product and expected present valuation. |
| Date: | 2023–12 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2312.16179&r=net |
| By: | C\'elestin Coquid\'e; Jos\'e Lages; Dima L. Shepelyansky |
| Abstract: | We extend the opinion formation approach to probe the world influence of economical organizations. Our opinion formation model mimics a battle between currencies within the international trade network. Based on the United Nations Comtrade database, we construct the world trade network for the years of the last decade from 2010 to 2020. We consider different core groups constituted by countries preferring to trade in a specific currency. We will consider principally two core groups, namely, 5 Anglo-Saxon countries which prefer to trade in US dollar and the 11 BRICS+ which prefer to trade in a hypothetical currency, hereafter called BRI, pegged to their economies. We determine the trade currency preference of the other countries via a Monte Carlo process depending on the direct transactions between the countries. The results obtained in the frame of this mathematical model show that starting from year 2014 the majority of the world countries would have preferred to trade in BRI than USD. The Monte Carlo process reaches a steady state with 3 distinct groups: two groups of countries preferring, whatever is the initial distribution of the trade currency preferences, to trade, one in BRI and the other in USD, and a third group of countries swinging as a whole between USD and BRI depending on the initial distribution of the trade currency preferences. We also analyze the battle between USD, EUR and BRI, and present the reduced Google matrix description of the trade relations between the Anglo-Saxon countries and the BRICS+. |
| Date: | 2024–01 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2401.02378&r=net |