Production Efforts in Large Indian Cities: A Network-based Approach

Sebastian Bervoets and Frédéric Deroïan ()

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Abstract: In this article we construct a network of roads connecting large Indian cities and we evaluate this network's overall performance. We consider a model where the production efforts of connected cities are strategic complements, and we relate the equilibrium effort profile to a well known centrality measure, the Katz-Bonacich centrality. We then make use of this result to compute the level of efforts of different cities in the current network and identify which city contributes most to overall efforts, which existing road is the most influential and which new road should be constructed in priority. Our results shed light on the importance of relatively small cities on aggregate efforts. Our exercise illustrates how network details might generate unexpected effects. JEL: C72, D85

Keywords: aggregate efforts maximiza; aggregate efforts maximization; Indian National Roads Network; Network policy; strategic complementarity (search for similar items in EconPapers)
Date: 2013
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Published in Journal of Interdisciplinary Economics, 2013, 25 (1-2), pp.117--145. ⟨10.1177/0260107914524671⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-01498244

DOI: 10.1177/0260107914524671

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