Coordination Failures in Network Migration

Axel Heitmueller

No 770, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: Previous migration facilitates future population moves, a phenomenon called network migration. However, thus far, network migration has been closely linked to network externalities. In contrast, this paper argues that the incumbent migration population can actively impact on future migration flows, yet fails to achieve a Pareto optimal network size due to coordination failures. In short, it stresses the active role incumbents take in the provision of network effects and, second, it provides theoretical evidence that self-perpetuating and sustained immigration is not at odds with rational acting individuals and must not simply be ascribed to pure network externalities.

Keywords: optimal network size; Pareto optimality; household migration networks; network externalities (search for similar items in EconPapers)
JEL-codes: C70 J60 J61 (search for similar items in EconPapers)
Pages: 12 pages
Date: 2003-04
New Economics Papers: this item is included in nep-net
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Citations: View citations in EconPapers (11)

Published - published in: Manchester School, 2006, 74(6), 701-710

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Related works:
Journal Article: COORDINATION FAILURES IN NETWORK MIGRATION* (2006)
Working Paper: Co-ordination Failures in Network Migration (2003)
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