Collaborative production networks among unequal actors

Manuel Munoz, Jacob Dijkstra (), Andreas Flache () and Rafael Wittek ()
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Rafael Wittek: Division of Social Science

No 20190029, Working Papers from New York University Abu Dhabi, Department of Social Science

Abstract: We develop a model of strategic network formation of collaborations to analyze the consequences of an understudied but consequential form of heterogeneity: differences between actors in the form of their production functions. We also address how this interacts with resource heterogeneity, as a way to measure the impact actors have as potential partners on a collaborative project. Some actors (e.g. start-up firms) may exhibit increasing returns to their investment into collaboration projects, while others (e.g. established firms) may face decreasing returns. Our model provides insights into how actor heterogeneity can help explain well-observed collaboration patterns. We show that if there is a direct relation between increasing returns and resources, start-ups exclude mature firms and networks become segregated by types of production function, portraying dominant group architectures. On the other hand, if there is an inverse relation between increasing returns and resources, networks portray core-periphery architectures, where the mature firms form a core and start-ups with low-resources link to them. JEL Codes: D85, D03, C72

Pages: 24 pages
Date: 2019-10, Revised 2020-09
New Economics Papers: this item is included in nep-gth and nep-net
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https://nyuad.nyu.edu/content/dam/nyuad/academics/ ... ers/2020/0029(1).pdf First version, 2019 (application/pdf)

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Journal Article: Collaborative production networks among unequal actors (2021)
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