IDEAS home Printed from https://ideas.repec.org/a/eee/jeborg/v119y2015icp375-399.html
   My bibliography  Save this article

Stability in a network economy: The role of institutions

Author

Listed:
  • Gilles, Robert P.
  • Lazarova, Emiliya A.
  • Ruys, Pieter H.M.

Abstract

We consider an economy in which agents are embedded in a network of potential value-generating relationships. Agents are assumed to be able to participate in three types of economic interactions: Autarkic self-provision; bilateral interaction; and multilateral collaboration through endogenously provided platforms.

Suggested Citation

  • Gilles, Robert P. & Lazarova, Emiliya A. & Ruys, Pieter H.M., 2015. "Stability in a network economy: The role of institutions," Journal of Economic Behavior & Organization, Elsevier, vol. 119(C), pages 375-399.
  • Handle: RePEc:eee:jeborg:v:119:y:2015:i:c:p:375-399
    DOI: 10.1016/j.jebo.2015.09.011
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0167268115002541
    Download Restriction: Full text for ScienceDirect subscribers only

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Chung, Kim-Sau, 2000. "On the Existence of Stable Roommate Matchings," Games and Economic Behavior, Elsevier, vol. 33(2), pages 206-230, November.
    2. Jean‐Charles Rochet & Jean Tirole, 2006. "Two‐sided markets: a progress report," RAND Journal of Economics, RAND Corporation, vol. 37(3), pages 645-667, September.
    3. Kuran, Timur, 2009. "Preface: The economic impact of culture, religion and the law," Journal of Economic Behavior & Organization, Elsevier, vol. 71(3), pages 589-592, September.
    4. Jean-Charles Rochet & Jean Tirole, 2014. "Platform Competition in Two-Sided Markets," CPI Journal, Competition Policy International, vol. 10.
    5. Frederking, Lauretta Conklin, 2002. "Is there an endogenous relationship between culture and economic development?," Journal of Economic Behavior & Organization, Elsevier, vol. 48(2), pages 105-126, June.
    6. Robert P. Gilles & Dimitrios Diamantaras, 2013. "Platform Competition as Network Contestability," DETU Working Papers 1303, Department of Economics, Temple University.
    7. Scotchmer, Suzanne, 2002. "Local public goods and clubs," Handbook of Public Economics,in: A. J. Auerbach & M. Feldstein (ed.), Handbook of Public Economics, edition 1, volume 4, chapter 29, pages 1997-2042 Elsevier.
    8. Jackson, Matthew O. & Wolinsky, Asher, 1996. "A Strategic Model of Social and Economic Networks," Journal of Economic Theory, Elsevier, vol. 71(1), pages 44-74, October.
    9. Sotomayor, Marilda, 1996. "A Non-constructive Elementary Proof of the Existence of Stable Marriages," Games and Economic Behavior, Elsevier, vol. 13(1), pages 135-137, March.
    10. repec:ebl:ecbull:v:3:y:2008:i:12:p:1-8 is not listed on IDEAS
    11. Gilles, Robert P. & Scotchmer, Suzanne, 1997. "Decentralization in Replicated Club Economies with Multiple Private Goods," Journal of Economic Theory, Elsevier, vol. 72(2), pages 363-387, February.
    12. Matthew Jackson & Alison Watts, 2008. "Equilibrium Existence in Bipartite Social Games: A Generalization of Stable Matchings," Economics Bulletin, AccessEcon, vol. 3(12), pages 1-8.
    13. Partha Dasgupta, 2005. "Economics of Social Capital," The Economic Record, The Economic Society of Australia, vol. 81(s1), pages 2-21, August.
    14. Conley, John P. & Konishi, Hideo, 2002. "Migration-proof Tiebout equilibrium: existence and asymptotic efficiency," Journal of Public Economics, Elsevier, vol. 86(2), pages 243-262, November.
    15. George A. Akerlof, 1982. "Labor Contracts as Partial Gift Exchange," The Quarterly Journal of Economics, Oxford University Press, vol. 97(4), pages 543-569.
    16. Neilson, William S., 1999. "The economics of favors," Journal of Economic Behavior & Organization, Elsevier, vol. 39(4), pages 387-397, July.
    17. Conley, John P. & Wooders, Myrna H., 1997. "Equivalence of the Core and Competitive Equilibrium in a Tiebout Economy with Crowding Types," Journal of Urban Economics, Elsevier, vol. 41(3), pages 421-440, May.
    18. Baker, Matthew & Bulte, Erwin & Weisdorf, Jacob, 2010. "The origins of governments: from anarchy to hierarchy," Journal of Institutional Economics, Cambridge University Press, vol. 6(02), pages 215-242, June.
    19. Tayfun Sönmez & Suryapratim Banerjee & Hideo Konishi, 2001. "Core in a simple coalition formation game," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 18(1), pages 135-153.
    20. Kaufman, Bruce E., 2003. "The organization of economic activity: insights from the institutional theory of John R. Commons," Journal of Economic Behavior & Organization, Elsevier, vol. 52(1), pages 71-96, September.
    21. Howitt, Peter & Clower, Robert, 2000. "The emergence of economic organization," Journal of Economic Behavior & Organization, Elsevier, vol. 41(1), pages 55-84, January.
    22. Dehejia, Rajeev & DeLeire, Thomas & Luttmer, Erzo F.P., 2007. "Insuring consumption and happiness through religious organizations," Journal of Public Economics, Elsevier, vol. 91(1-2), pages 259-279, February.
    23. Dreze, J H & Greenberg, J, 1980. "Hedonic Coalitions: Optimality and Stability," Econometrica, Econometric Society, vol. 48(4), pages 987-1003, May.
    24. Evans David S., 2003. "Some Empirical Aspects of Multi-sided Platform Industries," Review of Network Economics, De Gruyter, vol. 2(3), pages 1-19, September.
    25. Charles M. Tiebout, 1956. "A Pure Theory of Local Expenditures," Journal of Political Economy, University of Chicago Press, vol. 64, pages 416-416.
    26. Smith, Adam, 1776. "An Inquiry into the Nature and Causes of the Wealth of Nations," History of Economic Thought Books, McMaster University Archive for the History of Economic Thought, number smith1776.
    27. Michele Piccione & Ariel Rubinstein, 2007. "Equilibrium in the Jungle," Economic Journal, Royal Economic Society, vol. 117(522), pages 883-896, July.
    28. Ahmed Mushfiq Mobarak, 2005. "Democracy, Volatility, and Economic Development," The Review of Economics and Statistics, MIT Press, vol. 87(2), pages 348-361, May.
    29. Goyal, Sanjeev & Janssen, Maarten C. W., 1995. "Dynamic coordination failures and the efficiency of the firm," Journal of Economic Behavior & Organization, Elsevier, vol. 28(2), pages 223-239, October.
    30. Sugden, Robert, 1995. "The coexistence of conventions," Journal of Economic Behavior & Organization, Elsevier, vol. 28(2), pages 241-256, October.
    31. Wagner, Richard E., 2012. "A macro economy as an ecology of plans," Journal of Economic Behavior & Organization, Elsevier, vol. 82(2), pages 433-444.
    32. Stoelhorst, J.W. & Richerson, Peter J., 2013. "A naturalistic theory of economic organization," Journal of Economic Behavior & Organization, Elsevier, vol. 90(S), pages 45-56.
    33. Bramoulle, Yann & Kranton, Rachel, 2007. "Public goods in networks," Journal of Economic Theory, Elsevier, vol. 135(1), pages 478-494, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. repec:spr:topjnl:v:25:y:2017:i:1:d:10.1007_s11750-017-0443-6 is not listed on IDEAS
    2. Elsner, Wolfram, 2017. "Policy and State in Complexity Economics," EconStor Preprints 158766, ZBW - German National Library of Economics.
    3. Pieter H.M. RUYS, 2014. "Architecture of an Economy with Social Enterprises: the Relational Capacity Approach," CIRIEC Working Papers 1413, CIRIEC - Université de Liège.
    4. repec:eee:jcecon:v:46:y:2018:i:2:p:598-615 is not listed on IDEAS
    5. Yuri Biondi & Feng Zhou, 2017. "Interbank Credit and the Money Manufacturing Process. A Systemic Perspective on Financial Stability," Papers 1702.08774, arXiv.org.
    6. repec:spr:topjnl:v:25:y:2017:i:1:d:10.1007_s11750-017-0442-7 is not listed on IDEAS

    More about this item

    Keywords

    Network economies; Bilateral and multilateral interaction; Stable outcomes; Institutional stability;

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D71 - Microeconomics - - Analysis of Collective Decision-Making - - - Social Choice; Clubs; Committees; Associations
    • D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jeborg:v:119:y:2015:i:c:p:375-399. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dana Niculescu). General contact details of provider: http://www.elsevier.com/locate/jebo .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.