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Efficient networks for a class of games with global spillovers

Author

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  • Sudipta Sarangi
  • Pascal Billand
  • Christophe Bravard
  • Jacques Durieu

Abstract

In this paper we characterize efficient networks for network formation games with global spillovers, that satisfy convexity and sub-modularity properties. This allows us to complete the work of Goyal and Joshi (2006) and Westbrock on collaborative oligopoly networks. In particular, we establish that efficient networks are nested split graphs in this class of games.

Suggested Citation

  • Sudipta Sarangi & Pascal Billand & Christophe Bravard & Jacques Durieu, 2013. "Efficient networks for a class of games with global spillovers," Departmental Working Papers 2013-06, Department of Economics, Louisiana State University.
    • Handle: RePEc:lsu:lsuwpp:2013-06
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    File URL: https://www.lsu.edu/business/economics/files/workingpapers/pap13_06.pdf
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    References listed on IDEAS

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    1. Pascal Billand & Christophe Bravard & Subhadip Chakrabarti & Sudipta Sarangi, 2014. "A note on networks of collaboration in multi-market oligopolies," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 53(2), pages 325-335, September.
    2. , D. & Tessone, Claudio J. & ,, 2014. "Nestedness in networks: A theoretical model and some applications," Theoretical Economics, Econometric Society, vol. 9(3), September.
    3. Goyal, Sanjeev & Joshi, Sumit, 2003. "Networks of collaboration in oligopoly," Games and Economic Behavior, Elsevier, vol. 43(1), pages 57-85, April.
    4. Antoni Calvó-Armengol & Matthew O. Jackson, 2004. "The Effects of Social Networks on Employment and Inequality," American Economic Review, American Economic Association, vol. 94(3), pages 426-454, June.
    5. König, Michael D. & Battiston, Stefano & Napoletano, Mauro & Schweitzer, Frank, 2012. "The efficiency and stability of R&D networks," Games and Economic Behavior, Elsevier, vol. 75(2), pages 694-713.
    6. Sanjeev Goyal & Sumit Joshi, 2006. "Unequal connections," International Journal of Game Theory, Springer;Game Theory Society, vol. 34(3), pages 319-349, October.
    7. Mohamed Belhaj & Sebastian Bervoets & Frédéric Deroïan, 2013. "Network Design under Local Complementarities," Working Papers halshs-00796487, HAL.
    8. Goyal, Sanjeev & Joshi, Sumit, 2003. "Networks of collaboration in oligopoly," Games and Economic Behavior, Elsevier, vol. 43(1), pages 57-85, April.
    9. Hagedoorn, John, 2002. "Inter-firm R&D partnerships: an overview of major trends and patterns since 1960," Research Policy, Elsevier, vol. 31(4), pages 477-492, May.
    10. Pascal Billand & Christophe Bravard & Subhadip Chakrabarti & Sudipta Sarangi, 2014. "A Note on Networks of Collaboration in Multi-market Oligopolies," Post-Print halshs-00878943, HAL.
    11. Bastian Westbrock, 2010. "Natural concentration in industrial research collaboration," RAND Journal of Economics, RAND Corporation, vol. 41(2), pages 351-371, June.
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    Citations

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    Cited by:

    1. Pascal Billand & Christophe Bravard & Jacques Durieu & Sudipta Sarangi, 2019. "Firm Heterogeneity And The Pattern Of R&D Collaborations," Economic Inquiry, Western Economic Association International, vol. 57(4), pages 1896-1914, October.
    2. Grandjean, G. & Tellone, D. & Vergote, W., 2016. "Cooperation, Competition and Entry in a Tullock Contest," LIDAM Discussion Papers CORE 2016032, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    3. Belhaj, Mohamed & Bervoets, Sebastian & Deroïan, Frédéric, 2016. "Efficient networks in games with local complementarities," Theoretical Economics, Econometric Society, vol. 11(1), January.
    4. Zenou, Yves & Lindquist, Matthew & Sauermann, Jan, 2015. "Network Effects on Worker Productivity," CEPR Discussion Papers 10928, C.E.P.R. Discussion Papers.
    5. Olaizola Ortega, María Norma & Valenciano Llovera, Federico, 2017. "Efficiency of weighted networks," IKERLANAK info:eu-repo/grantAgreeme, Universidad del País Vasco - Departamento de Fundamentos del Análisis Económico I.
    6. Qiang Gong & Huanxing Yang, 2020. "Collaborative Networks in Oligopoly with Asymmetric Firms," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 56(2), pages 357-380, March.
    7. Grandjean, G. & Tellone, D. & Vergote, W., 2017. "Endogenous network formation in a Tullock contest," Mathematical Social Sciences, Elsevier, vol. 85(C), pages 1-10.
    8. Hiller, Timo, 2022. "A simple model of network formation with competition effects," Journal of Mathematical Economics, Elsevier, vol. 99(C).
    9. Norma Olaizola & Federico Valenciano, 2020. "Dominance of weighted nested split graph networks in connections models," International Journal of Game Theory, Springer;Game Theory Society, vol. 49(1), pages 75-96, March.

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    More about this item

    JEL classification:

    • D70 - Microeconomics - - Analysis of Collective Decision-Making - - - General
    • D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation

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