Questions tagged [networks]

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Under what circumstances does trade yield Pareto-inferior results?

The usual assumption is that free trade always increases aggregate gains. This has in fact been proven for various models of trade between countries, though there are counterexamples if one makes ...
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3 votes
2 answers
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Two-sided market framework

I have a very basic question about the elasticity of demand/participation in the two-sided market framework, as created by Weyl (2010) and described by Jullien, Pavan, and Rysman (2021). Using the ...
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Can one have a two-sided matching market where one side is not restricted to being matched to just one of the other side?

I'm working on a problem where there are two sets of agents, S's and T's. Let's say there are 3 of each, so we have: S1, S2, S3, and T1, T2, T3. Agents S1 through S3 have a valuation for each of T1 ...
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Social learning and diffusion

I'm looking at the literature on information dissemination within networks and came across the concept of diffusion of information in Alatas et al.,2016. The way I understood is diffusion refers to ...
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6 votes
1 answer
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Definition of Diffusion Centrality in Banerjee et al. (2019)

I am reading "Using gossips to spread information: Theory and evidence from two Randomised Control Trials" by Banerjee, Chandrashekhar, Duflo and Jackson, where they discuss the efficacy of ...
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3 votes
2 answers
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First order condition of log functions in general and interpretation

In the following, a first order condition for a log function is calculated. I know how the left part was calculated, however, I am a little bit confused where the gamma on the right site comes from ...
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Why is the equilibrium network size can be less than the socially optimal size in networks w/ positive externalities for single system?

For Context, I am reading http://web.mit.edu/rpindyck/www/Courses/NetEx19.pdf. The chapter talks about network externalities in single system like fax machine, email, vaccinations for measles. ...
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Risk Dominance on a Network

Suppose there are players on the network illustrated on the right (with 1 player on each vertex). There are two players $H$ and $J$ that are on the ends of the green line. $H$ plays $A$ and player $...
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2 answers
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Are there enough jobs for everyone? [closed]

If people work to get money/gold, and the money/gold is limited, then does that mean it is impossible for everyone in the world be employed?
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1 vote
0 answers
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In the discussion about why and how countries develop or industrialize, is there a debate about “related” or “linked” industries?

There is a fairly recent literature about "networks" (Barabasi, “Linked” 2003, Basic Books; Hausmann et al. “The Atlas of Economic Complexity 2014, MIT Press) that emphasize that some industries are ...
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What are some sectors in which nations benefit from collaborating with other nations?

For instance, if a nation is an ally (diplomatic/trade) with another nation, the average payoff each nation gets is higher than the payoff they would gain individually? For instance, comparing to ...
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Research on invisible networks [closed]

In social sciences, a lot of work is done on social networks. However, I have not found any work on invisible networks. If there are some, please list the same. If there are not any, why this is so? ...
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4 votes
3 answers
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What graph theory textbook should I use?

I'm doing my Msc dissertation on production networks and business cycles and I want to learn graph theory. I need to be able to model the evolution of the network and identify equilibrium graphs. ...
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4 votes
1 answer
306 views

Network goods in competitive markets vs. socially optimal network size

In networks economics, the socially optimum equilibrium is bigger than the one in perfect competition (see for instance, Easley and Kleinberg 2010, Ch. 17). Why is that so? Could you provide me with ...
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9 votes
2 answers
515 views

Where to start with social networks?

I'm working on my master's thesis in industrial organization and I have a model that is based on social networks. I have had two courses about social networks (one more focused on basic industrial ...
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7 votes
3 answers
128 views

Empirical studies on network equilibria

There have been a number of papers in the literature (pioneered by Sanjeev Goyal, Jackson, Kranton, amongst others) emphasising the role and importance of network structure in economics, the ...
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12 votes
1 answer
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Is there a folk theorem for repeated games on networks?

Games on networks have been studied extensively, however, I was not able to find a folk theorem for games on networks. Is there one or can it be derived from an already existing folk theorem? With ...
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