Knowledge externalities and production in network: game equilibria, types of nodes, network formation

Matveenko, Vladimir; Korolev, Alexei

doi:10.1504/ijcee.2017.086877

Cited by 2 publications

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“…Nonetheless, before starting to benefit from the network, one must add value and maintain a linkage to the other associates. “Each node obtains an externality produced by the sum of knowledge in neighbour nodes” [ 6 ] (Matveenko. Et al., 2017).…”

Section: Introductionmentioning

confidence: 99%

Production networks and resilience: How dense production networks shield economies in financial crisis

Caraiani,

Dima,

Păun

et al. 2024

PLoS ONE

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The research delves into the underexplored area of how production network structures influence the severity of economic downturns, particularly during the last financial crisis. Utilizing the RSTAN database from the OECD, we meticulously derived critical measures from the input-output matrices for 61 economies. Our methodology entailed a panel analysis spanning from 2008 to 2010, which is a period marked by significant recessionary pressures. This analysis aimed to correlate economic performance with various production network metrics, taking into account control factors such as interest rates and the prevalence of service sectors. The findings reveal a noteworthy positive correlation between the density of production networks and economic resilience during the crisis, which remained consistent across multiple model specifications. Conversely, as anticipated, higher interest rates were linked to poorer economic performance, highlighting the critical interplay between monetary policy and economic outcomes during periods of financial instability. Given these insights, we propose a policy recommendation emphasizing the strategic enhancement of production network density as a potential buffer against economic downturns. This approach suggests that policymakers should consider the structural aspects of production networks in designing economic stability and growth strategies, thus potentially mitigating the impacts of future financial crises.

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Section: Introductionmentioning

confidence: 99%

Production networks and resilience: How dense production networks shield economies in financial crisis

Caraiani,

Dima,

Păun

et al. 2024

PLoS ONE

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show abstract

“…In majority of research on game equilibria in networks, 2,[8][9][10] the agents are assumed to be homogeneous (except their positions in the network), and the problem is to study the relation between the agents' positions in the network and their behavior in the game equilibrium. The models demonstrate that the agents' behavior and wellbeing depend on their position in the network which is characterized by one or another measure of centrality.…”

Section: Introductionmentioning

confidence: 99%

“…For instance, Cinelli et al, 11 Ferraro and Iovanella, 12 and Ferraro et al 13 consider two types of nodes in a network. Different approaches to describe interrelations in networks are used, for example, intensiveness of interplay between nodes in the study by Ferraro et al 13 is given exogenously, while in the study by Matveenko and Korolev, 9 it depends endogenously on the agent's behavior in network, since in the latter work agents' interplay depends on the externalities created by investments of neighbors in the network.…”

Section: Introductionmentioning

confidence: 99%

“…In the present article, we add heterogeneity of agents into the Romer's 16 two-period consumption-investment model (where a special case of complete network is considered) and the more general model by Matveenko and Korolev. 9 These models consider situations in which in time period 1, each agent in network, at the expense of diminishing current consumption, makes investment of some resource (such as money or time) with the goal to increase her consumption in period 2. The latter depends not only on her own investment and productivity but also on investments by her neighbors in the network.…”

Section: Introductionmentioning

confidence: 99%

“…Romer’s 16 and Matveenko and Korolev 9 consider only the case of homogeneous (in their preferences and productivities) agents. In the present article, we assume that there are two types of agents with different productivities.…”

Section: Introductionmentioning

confidence: 99%

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Game equilibria and unification dynamics in networks with heterogeneous agents

Matveenko

Korolev

Zhdanova

2017

International Journal of Engineering Business Management

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We study game equilibria in a model of production and externalities in network with two types of agents who possess different productivities. Each agent may invest a part of her endowment (it may be, for instance, time or money) in the first of two time periods; consumption in the second period depends on her own investment and productivity as well as on the investments of her neighbors in the network. Three ways of agent's behavior are possible: passive (no investment), active (a part of endowment is invested), and hyperactive (the whole endowment is invested). For star network with different productivities of agents in the center and in the periphery, we obtain conditions for existence of inner equilibrium (with all active agents) and study comparative statics. We introduce adjustment dynamics and study consequences of junction of two complete networks with different productivities of agents. In particular, we study how the behavior of nonadopters (passive agents) changes when they connect to adopters (active or hyperactive) agents.

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Knowledge externalities and production in network: game equilibria, types of nodes, network formation

Cited by 2 publications

References 0 publications

Production networks and resilience: How dense production networks shield economies in financial crisis

Production networks and resilience: How dense production networks shield economies in financial crisis

Game equilibria and unification dynamics in networks with heterogeneous agents

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