This paper examines stability and efficiency of the Walrasian equilibrium outcome in a decentralized two-sided networked market, where any pair of a buyer and a seller must be connected by a link to engage in trading. In this networked market, buyers and sellers first form a network and then they trade goods. We find that if side-payment contracts contingent on links are available and link cost is low, there exists a pairwise Nash stable network supporting the Walrasian equilibrium outcome. In the pairwise Nash stable network, sellers over-invest in links. Thanks to this inefficient over-investment, a level of price competition among buyers is sufficiently high so that the Walrasian price is stable.

This book identifies, analyzes and discusses the current trends of digitalized, decentralized, and networked physical value creation by focusing on the particular example of 3D printing. In addition to evaluating 3D printing’s disruptive potentials against a broader economic background, it also addresses the technology’s potential impacts on sustainability and emerging modes of bottom-up and community-based innovation. Emphasizing these topics from economic, technical, social and environmental perspectives, the book offers a multifaceted overview that scrutinizes the scenario of a fundamental transition: from a centralized to a far more decentralized system of value creation.

Showcasing fresh methodological and empirical research on the econometrics of networks, and comprising both theoretical, empirical and policy papers, the authors in this volume bring together a wide range of perspectives to facilitate a dialogue between academics and practitioners for better understanding this groundbreaking field.

The Oxford Handbook of the Economics of Networks represents the frontier of research into how and why networks they form, how they influence behavior, how they help govern outcomes in an interactive world, and how they shape collective decision making, opinion formation, and diffusion dynamics. From a methodological perspective, the contributors to this volume devote attention to theory, field experiments, laboratory experiments, and econometrics. Theoretical work in network formation, games played on networks, repeated games, and the interaction between linking and behavior is synthesized. A number of chapters are devoted to studying social process mediated by networks. Topics here include opinion formation, diffusion of information and disease, and learning. There are also chapters devoted to financial contagion and systemic risk, motivated in part by the recent financial crises. Another section discusses communities, with applications including social trust, favor exchange, and social collateral; the importance of communities for migration patterns; and the role that networks and communities play in the labor market. A prominent role of networks, from an economic perspective, is that they mediate trade. Several chapters cover bilateral trade in networks, strategic intermediation, and the role of networks in international trade. Contributions discuss as well the role of networks for organizations. On the one hand, one chapter discusses the role of networks for the performance of organizations, while two other chapters discuss managing networks of consumers and pricing in the presence of network-based spillovers. Finally, the authors discuss the internet as a network with attention to the issue of net neutrality.

This book offers a service science perspective on platform orchestration and on collaborative consumption, providing an overview of research topics related to service dominant logic in multi-sided markets. The chapters give an international and multi-disciplinary overview of the current topics of digital service platforms from many angles. This overview helps in filling the gap between service science and recent research of the platform economy and paves the way for future service platform research. Open standards and distributed databases such as blockchain configurations increase the connectivity of business ecosystems as devices and systems exchange data with each other instead of through intermediaries. This exchange opens up opportunities for new value constellations, makes services globally scalable, and connects local service systems as integrated systems of systems. The book brings together established academics from a number of disciplines. This collaboration makes it possible to provide novel constructs and empirical results that help the reader to understand how value is co-created and orchestrated in the era of digital service platforms. In addition to theory building, practical implications for wider managerial and policy use are highlighted. The topics in this book are related to service platform technologies; organizational capabilities; and strategies and management in the contexts of retail, healthcare, and the public sector. A wide selection of case studies is used to demonstrate the implications of platforms for different service and economic contexts. Combining both theory and practice, this book is highly recommended for readers interested in the service and marketing point of view on the platform economy and for practitioners strategizing for scalable service platforms. Chapters 4 and 10 are available open access under a Creative Commons Attribution 4.0 International License via link.springer.com.

This innovative volume explores the role of networks and variation in their forms of governance in delivering successful local and regional economic development. Written by experts from different disciplines, it offers a judicious mix of general theoretical reflections and specific case studies of different places, sectors, and scales. The result is an important contribution to an emerging research agenda on networked governance and the governance of networks and their influence on competitiveness in and across different scales of economic activities. Bob Jessop, Lancaster University, UK Networks, Governance and Economic Development represents one of the most authoritative compilations on the role of networks. The editors have brought together an impressive group of scholars who, from different disciplinary approaches, provide a fantastic overview of the key aspects in the governance of networks and on how they affect local economic development. Andrés Rodríguez-Pose, London School of Economics, UK This compact and authoritative book brings together the topical themes of networks and governance to advance understanding of the determinants of local economic development in the context of increasingly global relationships. Analyzing the governance of networks is critical in understanding how individual localities are able to promote development and consolidate positions within global production systems. In addressing such issues, this book accomplishes a significant bridging of disciplinary boundaries, incorporating different theoretical and empirical perspectives on the meanings and roles of territory, economic development and different forms of networks and governance. Networks, Governance and Economic Development brings together the analysis of leading researchers in their fields, following their interactions at a European Science Foundation exploratory workshop. The chapters will be an invaluable resource to researchers working in the fields of regional economic development, economic geography and economic policy as well as postgraduate students taking modules that specialize in aspects of the above themes.