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From Exogenous to Endogenous Networks: Internet Applications Author info | Abstract | Publisher info | Download info | Related research | Statistics D'Ignazio, A.
Giovannetti, E.
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Economic agents' behavior is affected by their position in a network, either exogenous or endogenous, in which they interact with a subset of neighbours only. The network's links, which may be generated by vertical and/or horizontal relations, or by more complex morphologies, may explain the transition between dynamic equilibria and the instability of economic aggregates. Moreover, networks shape strategic interaction among agents by determining their strategies; the problem of access and interconnection, particularly relevant in the Internet, is perhaps the best example. A two-way feedback between strategies and network structures arises instead when links are endogenous: those features are clearly shown in the mechanism underlying the formation of peering links and R & D networks.
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Paper provided by Faculty of Economics, University of Cambridge in its series Cambridge Working Papers in Economics with number
0445.
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Length: 52
Date of creation: Sep 2004Date of revision:
Handle: RePEc:cam:camdae:0445Note: IOContact details of provider: Web page: http://www.econ.cam.ac.uk/index.htm
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Keywords: vertical restraints ; network formation ; Internet ; peering ; Other versions of this item:
Find related papers by JEL classification: L42 - Industrial Organization - - Antitrust Issues and Policies - - - Vertical Restraints; Resale Price Maintenance; Quantity Discounts L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software
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D'Ignazio, A. & Giovannetti, E., 2006.
"Spatial Dispersion of Peering Clusters in the European Internet ,"
Cambridge Working Papers in Economics
0601, Faculty of Economics, University of Cambridge.
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