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Four essays on economic networks
[Quatre essais sur les réseaux économiques]

Author

Listed:
  • Lucas Vernet

    (ECON - Département d'économie (Sciences Po) - Sciences Po - Sciences Po - CNRS - Centre National de la Recherche Scientifique)

Abstract

This dissertation lies at the intersection of two fields of research in economics that have recently substantially developed: on the one hand, the modeling and study of economic networks, and on the other hand, transport theory and its applications in economics. The four chapters of this dissertation present theoretical results in relation with these two topics and put stress on their connections. The first chapter models bipartite contracts on a decentralized market as an equilibrium flow problem. We prove the existence of a competitive equilibrium outcome and discuss its effciency. We interpret this equilibrium in the case of indivisible commodities. As an illustration, we build a model for the overnight interbank loan market with counterparty risk and collateralization costs. In the second one, written in collaboration with Alfred Galichon and Larry Samuelson, we prove a monotone comparative statics theorem that we then apply to several classical economic models (matching models, min-cost flow problems and hedonic models). The third chapter is a joint work with Alfred Galichon and Arthur Charpentier. It presents tools to solve for matching problems on large geographic networks before applying them to examples. Finally, the fourth chapter, written with Rakesh Vohra, shows how a monopolistic insurer can use externalities between agents - modeled as a network - to maximize his profit. We show that a monopolistic insurer decreases the welfare of all agents.

Suggested Citation

  • Lucas Vernet, 2019. "Four essays on economic networks [Quatre essais sur les réseaux économiques]," SciencePo Working papers Main tel-03657458, HAL.
  • Handle: RePEc:hal:spmain:tel-03657458
    Note: View the original document on HAL open archive server: https://hal-sciencespo.archives-ouvertes.fr/tel-03657458
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