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Towards a Theory of Impersonal Networking Decisions and Endogenous Structure of the Division of Labour

In: The Economics of E-Commerce and Networking Decisions

Author

Listed:
  • Guang-Zhen Sun
  • Xiaokai Yang
  • Shuntian Yao

Abstract

The purpose of this chapter is to prove the existence theorem and the first welfare theorem for a general class of equilibrium models with endogenous network structure of the division of labour, which is based on impersonal networking decisions. The importance of networking decisions is not difficult to understand in our era of e-commerce. In this chapter, we first draw the distinction between strategic networking decisions and impersonal networking decisions and examine why the theory of impersonal networking decisions has not received its deserved attention in the literature. We shall then examine why the proof of the two theorems is essential for a theoretical foundation of studies of impersonal networking decisions.

Suggested Citation

  • Guang-Zhen Sun & Xiaokai Yang & Shuntian Yao, 2003. "Towards a Theory of Impersonal Networking Decisions and Endogenous Structure of the Division of Labour," Palgrave Macmillan Books, in: Yew-Kwang Ng & Heling Shi & Guang-Zhen Sun (ed.), The Economics of E-Commerce and Networking Decisions, chapter 9, pages 171-194, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-1-4039-3837-4_9
    DOI: 10.1057/9781403938374_9
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