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From Exogenous To Endogenous Economic Networks: Internet Applications

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Author Info
Alessio D'Ignazio
Emanuele Giovannetti

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Abstract

Economic agents' behaviour is affected by their position in a network, either exogenous or endogenous, in which they interact with a sub-set of neighbours only. The network's links, which may be generated by vertical and/or horizontal relations, or by more complex morphologies, may explain the transition between dynamic equilibria and the instability of economic aggregates. Moreover, networks shape strategic interaction among agents by determining their strategies; the problem of access and interconnection, particularly relevant in the Internet, is perhaps the best example. A two-way feedback between strategies and network structures arises instead when links are endogenous: those features are clearly shown in the mechanism underlying the formation of peering links and R & D networks. Copyright 2006 The Authors Journal compilation © 2006 Blackwell Publishing Ltd.

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Article provided by Blackwell Publishing in its journal Journal of Economic Surveys.

Volume (Year): 20 (2006)
Issue (Month): 5 (December)
Pages: 757-796
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Handle: RePEc:bla:jecsur:v:20:y:2006:i:5:p:757-796

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  1. Antonelli Cristiano, 2008. "Pecuniary externalities: the convergence of directed technological change and the emergence of innovation systems," Dipartimento di Economia "S. Cognetti de Martiis" LEI & BRICK - Laboratorio di economia dell'innovazione "Franco Momigliano", Bureau of Research in Innovation, Complexity and Knowledge, Collegio Carlo 200807, University of Turin. [Downloadable!]
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This page was last updated on 2009-12-21.

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