On the emergence of scale-free production networks
We propose a simple dynamical model of the formation of production networks among monopolistically competitive firms. The model subsumes the standard general equilibrium approach \`a la Arrow-Debreu but displays a wide set of potential dynamic behaviors. It robustly reproduces key stylized facts of...
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03-09-2015
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| Abstract | We propose a simple dynamical model of the formation of production networks
among monopolistically competitive firms. The model subsumes the standard
general equilibrium approach \`a la Arrow-Debreu but displays a wide set of
potential dynamic behaviors. It robustly reproduces key stylized facts of
firms' demographics. Our main result is that competition between intermediate
good producers generically leads to the emergence of scale-free production
networks. |
|---|---|
| AbstractList | We propose a simple dynamical model of the formation of production networks
among monopolistically competitive firms. The model subsumes the standard
general equilibrium approach \`a la Arrow-Debreu but displays a wide set of
potential dynamic behaviors. It robustly reproduces key stylized facts of
firms' demographics. Our main result is that competition between intermediate
good producers generically leads to the emergence of scale-free production
networks. |
| Author | Gualdi, Stanislao Mandel, Antoine |
| Author_xml | – sequence: 1 givenname: Stanislao surname: Gualdi fullname: Gualdi, Stanislao – sequence: 2 givenname: Antoine surname: Mandel fullname: Mandel, Antoine |
| BackLink | https://doi.org/10.48550/arXiv.1509.01483$$DView paper in arXiv |
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| Snippet | We propose a simple dynamical model of the formation of production networks
among monopolistically competitive firms. The model subsumes the standard
general... |
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| SubjectTerms | Physics - Physics and Society Quantitative Finance - General Finance |
| Title | On the emergence of scale-free production networks |
| URI | https://arxiv.org/abs/1509.01483 |
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