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Networks in markets and the propensity of companies to collaborate: An empirical test of three mechanisms

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  • Lomi, Alessandro
  • Fonti, Fabio

Abstract

We propose and test hypotheses about three endogenous mechanisms that may be driving the observed network structure of producers’ markets. We use data that we have collected on collaborative network ties among producers. Estimates of Exponential Random Graphs Models (ERGM) support our hypotheses.

Suggested Citation

  • Lomi, Alessandro & Fonti, Fabio, 2012. "Networks in markets and the propensity of companies to collaborate: An empirical test of three mechanisms," Economics Letters, Elsevier, vol. 114(2), pages 216-220.
    • Handle: RePEc:eee:ecolet:v:114:y:2012:i:2:p:216-220
    DOI: 10.1016/j.econlet.2011.10.004
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    References listed on IDEAS

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    1. Ernst Fehr & Urs Fischbacher, "undated". "Third Party Punishment and Social Norms," IEW - Working Papers 106, Institute for Empirical Research in Economics - University of Zurich.
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    6. Hopp, Christian, 2008. "Are firms reluctant to engage in inter-organizational exchange relationships with competitors?," Economics Letters, Elsevier, vol. 100(3), pages 348-350, September.
    7. Easley,David & Kleinberg,Jon, 2010. "Networks, Crowds, and Markets," Cambridge Books, Cambridge University Press, number 9780521195331.
    8. Alan P. Kirman, 1992. "Whom or What Does the Representative Individual Represent?," Journal of Economic Perspectives, American Economic Association, vol. 6(2), pages 117-136, Spring.
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    Citations

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    Cited by:

    1. Johannes VAN DER POL, 2016. "The modelling of networks using Exponential Random Graph Models: an introduction," Cahiers du GREThA (2007-2019) 2016-22, Groupe de Recherche en Economie Théorique et Appliquée (GREThA).
    2. Arrieta-Paredes, Mary-Paz & Cronin, Bruce, 2017. "Exponential random graph models for management research: A case study of executive recruitment," European Management Journal, Elsevier, vol. 35(3), pages 373-382.
    3. Johannes van Der Pol, 2017. "Introduction to network modeling using Exponential Random Graph models (ERGM)," Working Papers hal-01284994, HAL.
    4. Johannes Pol, 2019. "Introduction to Network Modeling Using Exponential Random Graph Models (ERGM): Theory and an Application Using R-Project," Computational Economics, Springer;Society for Computational Economics, vol. 54(3), pages 845-875, October.
    5. Hazem KRICHENE & ARATA Yoshiyuki & Abhijit CHAKRABORTY & FUJIWARA Yoshi & INOUE Hiroyasu, 2018. "How Firms Choose their Partners in the Japanese Supplier-Customer Network? An application of the exponential random graph model," Discussion papers 18011, Research Institute of Economy, Trade and Industry (RIETI).

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    More about this item

    Keywords

    Producers’ markets; Exponential Random Graph Models; Interorganizational relations; Social networks; Social selection;
    All these keywords.

    JEL classification:

    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
    • L2 - Industrial Organization - - Firm Objectives, Organization, and Behavior

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