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on Network Economics |
| By: | Muriel Fadairo (Université de Lyon, Lyon F- 69007, France; CNRS, GATE L-SE, Ecully, F- 69130, France; Université J. Monnet, Saint-Etienne, F- 42000, France); Cyntia Lanchimba (National Polytechnic School, Quito, Ecuador; Université de Lyon, Lyon F- 69007, France; CNRS, GATE L-SE, Ecully, F- 69130, France; Université J. Monnet, Saint-Etienne, F- 42000, France); Miguel Yangari (National Polytechnic School, Quito, Ecuador) |
| Abstract: | Existing literature on franchising has extensively studied the presence of plural form distribution networks, where two types of vertical relationships - integration versus franchising - co-exist. However, despite the importance of monetary provisions in franchise contracts, their definition in the case of plural form networks had not been addressed. In this paper, we focus more precisely on the “share parameters” in integrated (company-owned retail outlet) and decentralized (franchised outlet) vertical contracts, respectively the commission rate and the royalty rate. We develop an agency model of payment mechanism in a two-sided moral hazard context, with one principal and two heterogenous agents distinguished by different levels of risk aversion. We define the optimal monetary provisions, and demonstrate that even in the case of segmented markets, with no correlation between demand shocks, the two rates (commission rate, royalty rate) are negatively interrelated. |
| Keywords: | Franchising, dual distribution, royalty rate, commission rate, moral hazard |
| JEL: | L14 D82 |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:gat:wpaper:1602&r=net |
| By: | Franz Dietrich (EEP-PSE - Ecole d'Économie de Paris - Paris School of Economics, CES - Centre d'économie de la Sorbonne - UP1 - Université Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique) |
| Abstract: | I propose a relevance-based independence axiom on how to aggregate individual yes/no judgments on given propositions into collective judgments: the collective judgment on a proposition depends only on people's judgments on propositions which are relevant to that proposition. This axiom contrasts with the classical independence axiom: the collective judgment on a proposition depends only on people's judgments on the same proposition. I generalize the premise-based rule and the sequential-priority rule to an arbitrary priority order of the propositions, instead of a dichotomous premise/conclusion order resp. a linear priority order. I prove four impossibility theorems on relevance-based aggregation. One theorem simultaneously generalizes Arrow's Theorem (in its general and indifference-free versions) and the well-known Arrow-like theorem in judgment aggregation. |
| Keywords: | judgment aggregation,generalized Arrow theorem,generalized premise-based and sequential-priority rules,priority graph,aggregation of non-binary evalua-tions |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:hal:cesptp:halshs-01249513&r=net |
| By: | Fehrler, Sebastian (University of Konstanz and IZA); Hughes, Niall (Department of Economics, University of Warwick) |
| Abstract: | We investigate the potential of transparency to influence committee decisionmaking.We present a model in which career concerned committee members receive private information of different type-dependent accuracy, deliberate and vote. We study three levels of transparency under which career concerns are predicted to affect behavior differently, and test the model’s key predictions in a laboratory experiment. The model’s predictions are largely borne out - transparency negatively affects information aggregation at the deliberation and voting stages, leading to sharply different committee error rates than under secrecy. This occurs despite subjects revealing more information under transparency than theory predicts. |
| Keywords: | Committee Decision-Making ; Deliberation ; Transparency ; Career Concerns ; Information Aggregation ; Experiments ; Voting ; Strategic Communication |
| JEL: | C92 D71 D83 |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:wrk:warwec:1088&r=net |
| By: | Seppälä, Timo; Mattila, Juri |
| Abstract: | In the Europe 2020 strategy, the European Commission has defined trust and security as one of the seven key pillars of its digital agenda. This decision, of course, is not a difficult one to rationalize. Without trust and security, the prospects of benefiting from any kind of a network of systems are extremely limited — no matter how interoperable and pervasive the network in itself may be. |
| Date: | 2016–01–07 |
| URL: | http://d.repec.org/n?u=RePEc:rif:briefs:42&r=net |
| By: | Balazs Sziklai (Momentum Game Theory Research Group, Institute of Economics, Centre for Economic and Regional Studies, Hungarian Academy of Sciences) |
| Abstract: | The group identification literature mostly revolves around the problem of identifying individuals in the community who belong to groups with ethnic or religious identity. Here we use the same model framework to identify individuals who play key role in some sense. In particular we will focus on expert selection in social networks. Ethnic groups and experts groups need completely different approaches and different type of selection rules are successful for one and for the other. We drop monotonicity and independence, two common requirements, in order to achieve stability, a property which is indispensable in case of expert selection. The idea is that experts are more effective in identifying each other, thus the selected individuals should support each others membership. We propose an algorithm based on the so called top candidate relation. We establish an axiomatization to show that it is theoretically well-founded. Furthermore we present a case study using citation data to demonstrate its effectiveness. We compare its performance with classical centrality measures. |
| Keywords: | Group identification, Expert selection, Stability, Citation analysis, Nucleolus |
| JEL: | D71 |
| Date: | 2015–09 |
| URL: | http://d.repec.org/n?u=RePEc:has:discpr:1549&r=net |
| By: | Balazs Lengyel (Institute of Economics - Centre for Economic and Regional Studies - Hungarian Academy of Sciences); Rikard Eriksson (Department of Geography and Economic History, Umea University) |
| Abstract: | This paper provides a new empirical perspective for analysing the role of social networks for an economic geography approach on regional economic growth by constructing large-scale networks from employee-employee co-occurrences in plants in the entire Swedish economy 1990-2008. We calculate the probability of employee-employee ties at plant level based on homophily-biased random network assumptions and trace the most probable relations of every employee over the full period. Then, we look at the inter-plant ties for the 1995-2008 period because the network is already well developed after five years of edge construction. We argue that these personal acquaintances are important for local learning opportunities and consequently for regional growth. Indeed, the estimated panel Vector Autoregressive models provide the first systematic evidence for a central claim in economic geography: social network density has positive effect on regional productivity growth. The results are robust against removing the old and therefore weak ties from the network. Interestingly, the positive effect of density on growth was found in a segment of the co-worker network as well, in which plants have never been linked by labour mobility previously. |
| Keywords: | social network, homophily, probability of ties, labour mobility, regional productivity growth, panel vector autoregression |
| JEL: | D85 J24 J61 R11 R23 |
| Date: | 2015–09 |
| URL: | http://d.repec.org/n?u=RePEc:has:discpr:1550&r=net |
| By: | Swaha Bhattacharya; Sona Biswas |
| Abstract: | The aim of the present investigation is to study the social interaction anxiety and self-esteem of internet users between the ages 18 to 25 years. Accordingly, a group of 90 internet users (30 from internet user without addiction, 30 from internet user with mild addiction and 30 from internet user with moderate addiction) were selected as sample in this investigation. A General Information Schedule, Internet Addiction Test, Social Interaction Anxiety Scale and Rosenberg’s Self-Esteem Scale were used as tools. The findings revealed that social interaction anxiety increases with the increase of internet usage, on the other hand, self-esteem is comparatively higher among the internet users without addiction than that of the mild and moderately addicted internet users. Besides this, there is positive correlation between internet usage and social interaction anxiety. On the contrary, there is negative correlation between internet usage and self-esteem. Considering the findings of the study, it can be said that there is a dire need to develop intervention strategies for the internet addicted people to increase their self-esteem and also to reduce their problems related to social interaction anxiety. Key words: Social-interaction anxiety, Self-esteem and Internet usage |
| Date: | 2015–12 |
| URL: | http://d.repec.org/n?u=RePEc:vor:issues:2015-12-01&r=net |
| By: | Zhongxing Wang; Yan Yan; Xiaosong Chen |
| Abstract: | There are more than eight hundred interest rates published in China bond market every day. Which are the benchmark interest rates that have broad influences on most interest rates is a major concern for economists. In this paper, multi-variable Granger causality test is developed and applied to construct a directed network of interest rates, whose important nodes, regarded as key interest rates, are evaluated with inverse Page Rank scores. The results indicate that some short-term interest rates have larger influences on the most key interest rates, while repo rates are the benchmark of short-term rates. It is also found that central bank bills'rates are in the core position of mid-term interest rates'network, and treasury bond rates are leading the long-term bonds rates. The evolution of benchmark interest rates is also studied from 2008 to 2014, and it's found that SHIBOR has generally become the benchmark interest rate in China. In the frequency domain we detect the properties of information flows between interest rates and the result confirms the existence of market segmentation in China bond market. |
| Date: | 2016–01 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:1601.00263&r=net |
| By: | Matt V. Leduc; Sebastian Poledna; Stefan Thurner |
| Abstract: | We study insolvency cascades in an interbank system when banks are allowed to insure their loans with credit default swaps (CDS) sold by other banks. We show that, by properly shifting financial exposures from one institution to another, a CDS market can be designed to rewire the network of interbank exposures in a way that makes it more resilient to insolvency cascades. A regulator can use information about the topology of the interbank network to devise a systemic insurance surcharge that is added to the CDS spread. CDS contracts are thus effectively penalized according to how much they contribute to increasing systemic risk. CDS contracts that decrease systemic risk remain untaxed. We simulate this regulated CDS market using an agent-based model (CRISIS macro-financial model) and we demonstrate that it leads to an interbank system that is more resilient to insolvency cascades. |
| Date: | 2016–01 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:1601.02156&r=net |