We investigate whether network closure in the supply chain can explain the heterogeneity observed in import premia. Using unique panel data on trade flows among beef farms in the Italian region of Piedmont, we analyze a purely sequential supply chain characterized by the co-existence of two...

The restrictive measures that have been imposed from March 2020 on business activities in several countries to reduce the spread of the COVID-19 pandemic can be interpreted as shocks to global supply chains. We propose some agent-based models to evaluate the economic effects of different...

Popularity bias -- the tendency to make choices that are more popular -- is a widespread behavior. We incorporate this bias into a dynamic model of a bipartite economy with heterogeneous agents, where each agent primarily cares about obtaining her optimal number of partners. We provide a full...

In a general model of trading networks with bilateral contracts, we propose a suitably adapted chain stability concept that plays the same role as pairwise stability in two-sided settings. We show that chain stability is equivalent to stability if all agents' preferences are jointly fully...

Power is one of the key components in understanding and analyzing global production and is central to the analytical frameworks of both GVCs and GPNs. By focusing on firms' power within GPNs, we are able to draw a novel analytical link between the governance structures of GVCs and network...

The Optimization principles are now considered center of Supply Chain Management (SCM) process. In this paper we will review conceptually the general approach of Optimization of Supply Chain Network for manufacturers. The mathematical modelling which are used for the designing Supply Chain...

Supply chain disturbances can lead to substantial increases in production costs. To mitigate these risks, firms may take steps to reduce their reliance on volatile suppliers. We construct a model of endogenous network formation to investigate how these decisions affect the structure of the...

We show that supply networks are inefficiently, and insufficiently, resilient. Upstream firms can expand their production capacity to hedge against supply and demand shocks. But the social benefits of such investments are not internalized due to market power and market incompleteness. Upstream...

The question of how to optimally design an infrastructure network that may be subject to intelligent threats is of highest interest. We address this problem by considering a Designer-Adversary game of optimal network design for the case of imperfect node defense. In this two-stage game, first...

Based on a novel dataset constructed with the supplier-consumer paired sample, this paper uses a difference-in-differences approach to evaluate the impact of national high-tech zones on firm performance. We find that the supplier's sales growth rate increased by about 61.35% after the approval...