{"title":"Word-of-Mouth Networks and Adoption Cascades","authors":"Vincent Mak","doi":"10.2139/ssrn.1081528","DOIUrl":"https://doi.org/10.2139/ssrn.1081528","url":null,"abstract":"We examine how word-of-mouth learning may lead to uniform and possibly inefficient actions in finite time among a network of agents. In our model, agents are identically informed a priori and observe network neighbors’ actions as well as the payoffs of some or all of those actions (a stylization of word-of-mouth communication of product choice and consumption experience). We identify conditions under which actions become uniform in finite time, in which agents disregard observed payoffs and imitate observed actions. Our results also allow us to interpret critical mass and network brokerage effects through word-of-mouth learning without invoking extraneous utility assumptions.","PeriodicalId":343564,"journal":{"name":"Economics of Networks","volume":"30 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2009-12-16","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"125981785","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"The Sealed-Bid Abstraction in Online Auctions","authors":"Robert Zeithammer, C. Adams","doi":"10.2139/ssrn.1028063","DOIUrl":"https://doi.org/10.2139/ssrn.1028063","url":null,"abstract":"This paper presents five empirical tests of the popular modeling abstraction that assumes bids from online auctions with proxy bidding can be analyzed “as if” they were bids from a second-price sealed-bid auction. The tests rely on observations of the magnitudes and timings of the top two proxy bids, with the different tests stemming from different regularity assumptions about the underlying distribution of valuation signals. We apply the tests to data from three eBay markets---MP3 players, DVDs, and used cars---and we reject the sealed-bid abstraction in all three data sets. A closer examination of these rejections suggests that they are driven by less experienced bidders. This consistent rejection casts doubt on several existing theories of online auction behavior and suggests some demand estimates based on the abstraction can be biased. To assess the direction and magnitude of this bias, we propose and estimate a new model in which some bidders conform to the abstraction while other bidders bid in a reactive fashion. Because reactive bidding can be at least partially detected from the data, we are able to estimate the underlying distribution of demand and compare it to what the sealed-bid abstraction implies. We find that our proposed model fits the data better, and our demand estimates reveal a large potential downward bias were we to assume the second-price sealed-bid model instead.","PeriodicalId":343564,"journal":{"name":"Economics of Networks","volume":"4 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2009-12-06","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"127950098","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Blogs and the Economics of Reciprocal Attention","authors":"Alexia Gaudeul, L. Mathieu, C. Peroni","doi":"10.2139/ssrn.1291376","DOIUrl":"https://doi.org/10.2139/ssrn.1291376","url":null,"abstract":"Blogs differ from other media in that authors are usually not remunerated and inscribe themselves in communities of similarly minded individuals. Bloggers value reciprocal attention, interaction with other bloggers and information from reading other blogs; they value being read but also writing itself, irrespective of an audience. A novel dataset from a major blogging community, LiveJournal, is used to verify predictions from a model of social networking. Content production and blogging activity are found to be related to the size and degree of asymmetry of the relational networks in which bloggers are inscribed.","PeriodicalId":343564,"journal":{"name":"Economics of Networks","volume":"1 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2009-10-21","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"129146964","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Acceptable Risk in a Two-Asset Game","authors":"Matjaž Steinbacher","doi":"10.2139/ssrn.1320993","DOIUrl":"https://doi.org/10.2139/ssrn.1320993","url":null,"abstract":"A social network model has been used to simulate how agents of different levels of risk aversion and the level of suspiciousness behave on a two-asset market when deciding between risk-free and a risky asset. The developments of the games are path-dependent. A significant feature of the paper is that mean returns of assets are a key determinant of the decision-making, while the variance as such is not. It has been demonstrated that the level of suspiciousness has a significant effect on the decision-making. Under most of the circumstances, pure risk-loving turns out to dominate over risk-aversion.","PeriodicalId":343564,"journal":{"name":"Economics of Networks","volume":"25 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2009-10-17","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"129597344","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Internet Penetration and Capacity Utilization in the US Airline Industry","authors":"James D Dana, Eugene Orlov","doi":"10.2139/ssrn.1297341","DOIUrl":"https://doi.org/10.2139/ssrn.1297341","url":null,"abstract":"Airline capacity utilization increased dramatically between 1993 and 2007, after staying fairly level following deregulation. We argue that consumers' use of the Internet to investigate and purchase airline tickets reduces market frictions and allows airlines to meet demand with less capacity and higher load factors. We find that differences in the rate of change of metropolitan area Internet penetration are positively correlated with differences in the rate of change of airlines' airport-pair load factors. Consistent with our explanation, this correlation is greater on flights in more competitive markets and on flights with fewer total passengers.","PeriodicalId":343564,"journal":{"name":"Economics of Networks","volume":"16 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2009-09-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"132617537","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"'Innovation Profiler' - Identification and Prioritisation of Innovation Factors Based on Social Network Analysis","authors":"Tobias Müller-Prothmann, Holger Rhinow","doi":"10.2139/ssrn.1433784","DOIUrl":"https://doi.org/10.2139/ssrn.1433784","url":null,"abstract":"Innovation is essential for both economies and companies to ensure competitiveness in today’s global markets. While many companies struggle with this task, others seem to take maximum advantage of their resources. The difference between innovation leaders and less innovative organisations can be ascribed to a variety of factors such as innovation infrastructure or corporate culture. Given limited resources, companies need to prioritise their efforts to become and remain innovative. The ‘Innovation Profiler’ is a tool to undertaking an individual analysis of a company’s innovation infrastructure and behaviour. It takes into account not only success factors but identifies disruptive factors for the development of a robust innovation management. The ‘Innovation Profiler’ provides insights into interrelations between various factors in order to understand their individual impact on the innovation capability. Analytical measures to analyse complex interrelations are based on methods of social network analysis (SNA). As a result, organisations are enabled to leverage their innovative potential by focusing on selected factors that are identified as highly relevant for their specific innovation management.","PeriodicalId":343564,"journal":{"name":"Economics of Networks","volume":"1 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2009-07-21","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"121839234","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"The Impact of Networking on Bank Financing: The Case of Small and Medium-Sized Enterprises in Vietnam","authors":"Ngoc-Thang B. Le, Thang V. Nguyen","doi":"10.1111/j.1540-6520.2009.00330.x","DOIUrl":"https://doi.org/10.1111/j.1540-6520.2009.00330.x","url":null,"abstract":"It is argued that networking is crucial for small and medium-sized enterprises (SMEs), particularly in emerging economies as they seek to access resources for development. One key resource in emerging economies is bank financing. In this paper, we develop a model that examines the net effect of different network ties on bank financing to private SMEs. The results support our hypothesis that different network ties influence SMEs' use of bank loans in different ways. Specifically, networking with customers and government officials promotes the use of bank loans, while networking with suppliers and social ties reduces the need for bank loans. This study provides a number of research and managerial implications, which are discussed at the end of the paper.","PeriodicalId":343564,"journal":{"name":"Economics of Networks","volume":"1 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2009-07-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"122060796","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Pricing Banner Advertisements in an Online Social Network","authors":"S. Hunter","doi":"10.2139/ssrn.1418625","DOIUrl":"https://doi.org/10.2139/ssrn.1418625","url":null,"abstract":"This paper examines the impact of social capital on advertisement prices in an online social network. Specifically, I show that a widely-employed measure of social capital - network constraint - explains variation in prices of 846 banner advertisements appearing within a social network formed by 89 'Liberal' and 84 'Conservative' weblogs. As predicted, weblogs that bridge 'structural holes' between otherwise disconnected segments of the network command significantly higher prices for their advertisements.","PeriodicalId":343564,"journal":{"name":"Economics of Networks","volume":"10 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2009-06-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"115106146","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"New Developments in Media Economics: The Concept of Multisided Markets (Neuere Entwicklungen in Der Medienökonomik: Das Konzept Der Mehrseitigen Märkte)","authors":"Oliver Budzinski, Nadine Lindstädt","doi":"10.2139/ssrn.1403137","DOIUrl":"https://doi.org/10.2139/ssrn.1403137","url":null,"abstract":"The economic analysis of media markets has recently been enriched by the application of the theory framework of multisided markets, which has led to new insights and changes in the assessment of pricing strategies from a welfare and a competition perspective. This paper reviews the basic elements of the theory of multisided markets and its application to media markets.","PeriodicalId":343564,"journal":{"name":"Economics of Networks","volume":"47 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2009-05-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"121712597","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Spread of (Mis)Information in Social Networks","authors":"D. Acemoglu, A. Ozdaglar, Ali ParandehGheibi","doi":"10.2139/ssrn.1401648","DOIUrl":"https://doi.org/10.2139/ssrn.1401648","url":null,"abstract":"We provide a model to investigate the tension between information aggregation and spread of misinformation. Individuals meet pairwise and exchange information, which is modeled as both individuals adopting the average of their pre-meeting beliefs. \"Forceful\" agents influence the beliefs of (some of) the other individuals they meet, but do not change their own opinions. We characterize how the presence of forceful agents interferes with information aggregation. Under the assumption that even forceful agents obtain some information from others, we first show that all beliefs converge to a stochastic consensus. Our main results quantify the extent of misinformation by providing bounds or exact results on the gap between the consensus value and the benchmark without forceful agents (where there is efficient information aggregation). The worst outcomes obtain when there are several forceful agents who update their beliefs only on the basis of information from individuals that have been influenced by them.","PeriodicalId":343564,"journal":{"name":"Economics of Networks","volume":"9 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2009-05-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"125144281","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}