Network models of innovation and knowledge diffusion
Much of modern micro-economics is built from the starting point of the perfectly competitive market. In this model there are an infinite number of agents — buyers and sellers, none of whom has the power to influence the price by his actions. The good is well-defined, indeed it is perfectly standardized. And any interactions agents have is mediated by the market. That is, all transactions are anonymous, in the sense that the identities of buyer and seller are unimportant. Effectively, the seller sells “to the market” and the buyer buys “from the market”. This follows from the standardization of the good, and the fact that the market imposes a very strong discipline on prices. Implicit here is one (or both) of two assumptions. Either all agents are identical in every relevant respect, apart, possibly, from the prices they ask or offer; or every agent knows every relevant detail about every other agent. If the former, then obviously my only concern as a buyer is the prices asked by the population of sellers since in every other way they are identical. If the latter, then each seller has a unique good, and again what I am concerned with is the price of it. In either case, we see that prices capture all relevant information and are enough for every agent to make all the decisions he needs to make....
|Date of creation:||2004|
|Date of revision:|
|Contact details of provider:|| Postal: P.O. Box 616, 6200 MD Maastricht|
Phone: (31) (0)43 3883875
Fax: (31) (0)43 3216518
Web page: http://www.maastrichtuniversity.nl/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Riccaboni, Massimo & Pammolli, Fabio, 2001.
"On Firm Growth in Networks,"
15964, University Library of Munich, Germany, revised 12 Nov 2001.
- Matthew O. Jackson & Asher Wolinsky, 1995.
"A Strategic Model of Social and Economic Networks,"
1098R, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
- Weisbuch, Gerard & Alan Kirman & Dorothea K. Herreiner, 1996.
Discussion Paper Serie B
391, University of Bonn, Germany.
- Lawrence Blume, 1993.
"The Statistical Mechanics of Best-Response Strategy Revision,"
Game Theory and Information
9307001, EconWPA, revised 26 Jan 1994.
- Blume Lawrence E., 1995. "The Statistical Mechanics of Best-Response Strategy Revision," Games and Economic Behavior, Elsevier, vol. 11(2), pages 111-145, November.
- Joel A. C. Baum & Andrew V. Shipilov & Tim J. Rowley, 2003. "Where do small worlds come from?," Industrial and Corporate Change, Oxford University Press, vol. 12(4), pages 697-725, August.
- Cowan Robin & Jonard Nicolas & Zimmermann J-B, 2004. "On the creation of networks and knowledge," Research Memorandum 010, Maastricht University, Maastricht Economic Research Institute on Innovation and Technology (MERIT).
- Adam B. Jaffe & Manuel Trajtenberg & Rebecca Henderson, 1993.
"Geographic Localization of Knowledge Spillovers as Evidenced by Patent Citations,"
The Quarterly Journal of Economics,
Oxford University Press, vol. 108(3), pages 577-598.
- Adam B. Jaffe & Manuel Trajtenberg & Rebecca Henderson, 1992. "Geographic Localization of Knowledge Spillovers as Evidenced by Patent Citations," NBER Working Papers 3993, National Bureau of Economic Research, Inc.
- Jaffe, A.B. & Trajtenberg, M., 1992. "Geographic Localization of Knowledge Spillovers as Evidenced by Patent Citations," Papers 14-92, Tel Aviv.
- Matthew O. Jackson, 2003.
"A survey of models of network formation: Stability and efficiency,"
1161, California Institute of Technology, Division of the Humanities and Social Sciences.
- Matthew O. Jackson, 2003. "A Survey of Models of Network Formation: Stability and Efficiency," Game Theory and Information 0303011, EconWPA.
- Steven N. Durlauf, 1993.
"Nonergodic Economic Growth,"
Review of Economic Studies,
Oxford University Press, vol. 60(2), pages 349-366.
- Kirman, Alan P. & Vriend, Nicolaas J., 2001. "Evolving market structure: An ACE model of price dispersion and loyalty," Journal of Economic Dynamics and Control, Elsevier, vol. 25(3-4), pages 459-502, March.
- Kirman, Alan P., 1983. "Communication in markets : A suggested approach," Economics Letters, Elsevier, vol. 12(2), pages 101-108.
- Plouraboue, F. & Steyer, A. & Zimmermann, J.B., 1996.
"Learning Induced Criticality in Consumers' Adoption Pattern: A Neural Network Approach,"
96a28, Universite Aix-Marseille III.
- Franck Plouraboue & Alexandre Steyer & Jean-Benoit Zimmermann, 1998. "Learing Induced Criticality In Consumers' Adoption Pattern: A Neural Network Approach," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 6(1), pages 73-90.
- Bengt Holmstrom & John Roberts, 1998. "The Boundaries of the Firm Revisited," Journal of Economic Perspectives, American Economic Association, vol. 12(4), pages 73-94, Fall.
- Cowan, R. & Jonard, N., 2003.
"The dynamics of collective invention,"
Journal of Economic Behavior & Organization,
Elsevier, vol. 52(4), pages 513-532, December.
- Alessandro Nuvolari, 2001.
"Collective Invention during the British Industrial Revolution The Case of the Cornish Pumping Engine,"
DRUID Working Papers
01-05, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
- Alessandro Nuvolari, 2004. "Collective invention during the British Industrial Revolution: the case of the Cornish pumping engine," Cambridge Journal of Economics, Oxford University Press, vol. 28(3), pages 347-363, May.
- Nuvolari, A., 2001. "Collective Invention during the British Industrial Revolution: The Case of the Cornish Pumping Engine," Working Papers 01.04, Eindhoven Center for Innovation Studies.
- Nuvolari, A., 2004. "Collective invention during the British Industrial Revolution: the case of the Cornish pumping engine," Working Papers 04.02, Eindhoven Center for Innovation Studies.
- Ellison, Glenn, 1993.
"Learning, Local Interaction, and Coordination,"
Econometric Society, vol. 61(5), pages 1047-71, September.
- Venkatesh Bala & Sanjeev Goyal, 2000. "A Noncooperative Model of Network Formation," Econometrica, Econometric Society, vol. 68(5), pages 1181-1230, September.
- Follmer, Hans, 1974. "Random economies with many interacting agents," Journal of Mathematical Economics, Elsevier, vol. 1(1), pages 51-62, March.
- Edward L. Glaeser & Bruce Sacerdote & Jose A. Scheinkman, 1995.
"Crime and Social Interactions,"
NBER Working Papers
5026, National Bureau of Economic Research, Inc.
- Edward E. Glaeser & Bruce Sacerdote & Jose A. Scheinkman, 1995. "Crime and Social Interactions," Harvard Institute of Economic Research Working Papers 1738, Harvard - Institute of Economic Research.
- Granstrand, Ove & Sjolander, Soren, 1990. "Managing innovation in multi-technology corporations," Research Policy, Elsevier, vol. 19(1), pages 35-60, February.
- Venkatesh Bala & Sanjeev Goyal, 1998. "Learning from Neighbours," Review of Economic Studies, Oxford University Press, vol. 65(3), pages 595-621.
- Allen, Beth, 1982. "Some Stochastic Processes of Interdependent Demand and Technological Diffusion of an Innovation Exhibiting Externalities among Adopters," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 23(3), pages 595-608, October.
- Stefano Breschi & Francesco Lissoni, 2003. "Mobility and Social Networks: Localised Knowledge Spillovers Revisited," KITeS Working Papers 142, KITeS, Centre for Knowledge, Internationalization and Technology Studies, Universita' Bocconi, Milano, Italy, revised Mar 2003.
- Carayol, Nicolas & Roux, Pascale, 2005.
"Self-organizing Innovation Networks: When do Small Worlds Emerge?,"
European Journal of Economic and Social Systems,
Lavoisier, vol. 18(2), pages 307-332.
- Nicolas CARAYOL (BETA) & Pascale ROUX (GRES-LEREPS), 2003. "Self-Organizing Innovation Networks: When do Small Worlds Emerge?," Cahiers du GRES (2002-2009) 2003-08, Groupement de Recherches Economiques et Sociales.
- Steyer, A & Zimmermann, J-B, 1997. "On the Frontier : Structural Effects in a Diffusion Model Based on Influence Matrixes," G.R.E.Q.A.M. 97a14, Universite Aix-Marseille III.
- Watts, Alison, 2001. "A Dynamic Model of Network Formation," Games and Economic Behavior, Elsevier, vol. 34(2), pages 331-341, February.
- Cohen, Wesley M & Levinthal, Daniel A, 1989. "Innovation and Learning: The Two Faces of R&D," Economic Journal, Royal Economic Society, vol. 99(397), pages 569-96, September.
- Steven C. Salop, 1979. "Monopolistic Competition with Outside Goods," Bell Journal of Economics, The RAND Corporation, vol. 10(1), pages 141-156, Spring.
- Saxenian, AnnaLee, 1991. "The origins and dynamics of production networks in Silicon Valley," Research Policy, Elsevier, vol. 20(5), pages 423-437, October.
When requesting a correction, please mention this item's handle: RePEc:unm:umamer:2004016. 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: (Charles Bollen)
If references are entirely missing, you can add them using this form.