Economic Institutions and Stability: A Network Approach

Robert Gilles, Emiliya Lazarova and Pieter Ruys

No 11-04, Economics Working Papers from Queen's Management School, Queen's University Belfast

Abstract: We consider a network economy in which economic agents are connected within a structure of value-generating relationships. Agents are assumed to be able to participate in three types of economic activities: autarkic self-provision; binary matching interactions; and multi-person cooperative collaborations. We introduce two concepts of stability and provide sufficient and necessary conditions on the prevailing network structure for the existence of stable assignments, both in the absence of externalities from cooperation as well as in the presence of size-based externalities. We show that institutional elements such as the emergence of socioeconomic roles and hierarchical leadership structures are necessary for establishing stability and as such support and promote stable economic development.

Keywords: Cooperatives; Networks; Clubs; Network economies; Stable matchings (search for similar items in EconPapers)
JEL-codes: C72 D71 D85 (search for similar items in EconPapers)
Pages: 42 pages
Date: 2011-10
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
ftp://ftp.qub.ac.uk/pub/users/repec/qub/wpaper/MS_WPS_ECO_11_04.pdf (application/pdf)
Our link check indicates that this URL is bad, the error code is: 500 Failed to connect to FTP server ftp.qub.ac.uk: A connection attempt failed because the connected party did not properly respond after a period of time, or established connection failed because connected host has failed to respond.

Related works:
Working Paper: Economic Institutions and Stability: A Network Approach (2011)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:qub:wpaper:1104

Access Statistics for this paper

More papers in Economics Working Papers from Queen's Management School, Queen's University Belfast Contact information at EDIRC.
Bibliographic data for series maintained by Mark McGovern ( this e-mail address is bad, please contact ).