BOOLEAN NETWORK AND SIMMELIAN TIE IN THE CO-AUTHOR MODEL: A STUDY OF DYNAMICS AND STRUCTURE OF A STRATEGIC ALLIANCE MODEL

Laurent Tambayong ()
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Laurent Tambayong: Computational Analysis of Social and Organizational Systems, Carnegie Mellon University, 5000 Forbes Ave, Pittsburgh, PA 15213, USA

Advances in Complex Systems (ACS), 2011, vol. 14, issue 01, 1-12

Abstract: This article explains a simulation of the Co-Author Model (CAM) applied in strategic alliance setting where firms use and optimize their network resources. To understand its process casualty better, I explain the model's mechanisms in terms of its interactive dynamics and resulting equilibrium structure. Classified as a Boolean network with two inputs, CAM's dynamics cause a biased equilibrium structure that could then be explained by the Simmelian tie and the completion of structure through structural balance. These explanations not only could answer the criticism that a simulation model is merely a toy model without much realism but could also explain and give insights to both substantive theory and methodology development in strategic alliance research. The results include the effect of a third party, the embeddedness of firms in their alliances, and the real-world implications of the "frozen web": a phenomenon drawn parallel to the financial crisis beginning in 2007.

Keywords: Mechanism design; network; game theory; strategic alliance; structural balance (search for similar items in EconPapers)
Date: 2011
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Persistent link: https://EconPapers.repec.org/RePEc:wsi:acsxxx:v:14:y:2011:i:01:n:s0219525911002901

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DOI: 10.1142/S0219525911002901

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