efficiency and evolution of R&D Networks.

This work introduces a new model to investigate the efficiency and evolution of networks of firms exchanging knowledge in R&D partnerships. We first examine the efficiency of a given network structure from the point of view of maximizing total profits in the industry. We show that the efficient network structure depends on the marginal cost of collaboration. When the marginal cost is low, the complete graph is efficient. However, a high marginal cost implies that the efficient network is sparser and has a core-periphery structure. Next, we examine the evolution of the network structure when the decision on collaborating partners is decentralized. We show the existence of multiple equilibrium structures which are in general inefficient. This is due to (i) the path dependent character of the partner selection process, (ii) the presence of knowledge externalities and (iii) the presence of severance costs involved in link deletion. Finally, we study the properties of the emerging equilibrium networks and we show that they are coherent with the stylized facts on R&D networks.R&D networks;technology spillovers;network efficiency;network formation;

The Efficiency and Evolution of R&D Networks

This work introduces a new model to investigate the efficiency and evolution of networks of firms exchanging knowledge in R&D partnerships. We first examine the efficiency of a given network structure in terms of the maximization of total profits in the industry. We show that the efficient network structure depends on the marginal cost of collaboration. When the marginal cost is low, the complete graph is efficient. However, a high marginal cost implies that the efficient network is sparser and has a core-periphery structure. Next, we examine the evolution of the network struc- ture when the decision on collaborating partners is decentralized. We show the existence of mul- tiple equilibrium structures which are in general inefficient. This is due to (i) the path dependent character of the partner selection process, (ii) the presence of knowledge externalities and (iii) the presence of severance costs involved in link deletion. Finally, we study the properties of the emerg- ing equilibrium networks and we show that they are coherent with the stylized facts of R&D net- works.R&D networks, technology spillovers, network efficiency, network formation

Network Evolution Based on Centrality

We study the evolution of networks when the creation and decay of links are based on the position of nodes in the network measured by their centrality. We show that the same network dynamics arises under various centrality measures, and solve analytically the network evolution. During the complete evolution, the network is characterized by nestedness: the neighbourhood of a node is contained in the neighbourhood of the nodes with larger degree. We find a discontinuous transition in the network density between hierarchical and homogeneous networks, depending on the rate of link decay. We also show that this evolution mechanism leads to double power-law degree distributions, with interrelated exponents.Comment: 6 pages, 3 figure

Dynamic R&D networks

In this paper we analyze R&D collaboration networks in industries where firms are competitors in the product market. Firms’ benefits from collaborations arise by sharing knowledge about a cost-reducing technology. By forming collaborations, however, firms also change their own competitive position in the market as well as the overall market structure. We analyze incentives of firms to form R&D collaborations with other firms and the implications of these alliance decisions for the overall network structure. We provide a general characterization of both equilibrium networks and endogenous production choices, and compare it to the efficient network architecture. We also allow for firms to differ in their technological characteristics, investigate how this affects their propensity to collaborate and study the resulting network architecture

Networks in conflict: theory and evidence from the Great War of Africa

We study from both a theoretical and an empirical perspective how a network of military alliances and enmities affects the intensity of a conflict. The model combines elements from network theory and from the politico-economic theory of conflict. We obtain a closed-form characterization of the Nash equilibrium. Using the equilibrium conditions, we perform an empirical analysis using data on the Second Congo War, a conflict that involves many groups in a complex network of informal alliances and rivalries. The estimates of the fighting externalities are then used to infer the extent to which the conflict intensity can be reduced through (i) dismantling specific fighting groups involved in the conflict; (ii) weapon embargoes; (iii) interventions aimed at pacifying animosity among groups. Finally, with the aid of a random utility model, we study how policy shocks can induce a reshaping of the network structure

Nestedness in networks: a theoretical model and some applications

We develop a dynamic network formation model that can explain the observed nestedness in real-world networks. Links are formed on the basis of agents' centrality and have an exponentially distributed life time. We use stochastic stability to identify the networks to which the network formation process converges and find that they are nested split graphs. We completely determine the topological properties of the stochastically stable networks and show that they match features exhibited by real-world networks. Using four different network datasets, we empirically test our model and show that it fits well the observed networks

Coulomb interaction effects in spin-polarized transport

We study the effect of the electron-electron interaction on the transport of spin polarized currents in metals and doped semiconductors in the diffusive regime. In addition to well-known screening effects, we identify two additional effects, which depend on many-body correlations and exchange and reduce the spin diffusion constant. The first is the "spin Coulomb drag" - an intrinsic friction mechanism which operates whenever the average velocities of up-spin and down-spin electrons differ. The second arises from the decrease in the longitudinal spin stiffness of an interacting electron gas relative to a noninteracting one. Both effects are studied in detail for both degenerate and non-degenerate carriers in metals and semiconductors, and various limiting cases are worked out analytically. The behavior of the spin diffusion constant at and below a ferromagnetic transition temperature is also discussed.Comment: 9 figure