In this paper we introduce a stochastic network formation model where agents choose both actions and links. Neighbors … in the network benefit from each other's action levels through local complementarities and there exists a global …

In this paper we introduce a stochastic network formation model where agents choose both actions and links. Neighbors … in the network benefit from each other's action levels through local complementarities and there exists a global …

economy. Our efficiency analysis further allows us to study the effect of competition on innovation in R&D intensive … portfolio of ideas that changes over time through innovations and knowledge spillovers between collaborating firms. The … destruction leading to the obsolescence of existing technologies. We quantify the innovation gains from collaborations, and show …

This paper extends the existing literature on strategic R&D alliances by presenting a model of innovation networks with … intensity of cooperation and innovation. Within different knowledge regimes, we examine the structure of networks that emerge … and how firms perform within such networks. Our model replicates some stylised empirical results on network structure and …

This paper extends the existing literature on strategic R&D alliances by presenting a model of innovation networks with … intensity of cooperation and innovation. Within different knowledge regimes, we examine the structure of networks that emerge … and how firms perform within such networks. Our model replicates some stylised empirical results on network structure and …

of the agreement form an information network. The network's members optimally specialize based on their opportunities in … particular aspects of the technology or in expanding or managing the network. Endogenously there are incentives to standardize on … designs and descriptions of the technology. A tinkerer in the network who sees an opportunity to produce a profitable product …