[PDF] A Markov Model Of Dynamic Network Formation A Production Network Perspective eBook

Author : Xiao Yang
Publisher :
Page : 0 pages
File Size : 36,78 MB
Release : 2021
Category :
ISBN :

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This paper develops a tractable model of dynamic network formation with heterogeneous forward-looking agents. The model bridges the gap between recent Macroeconomic models with exogenous production networks and static econometric models of networks formation games. I model network formation as a sequence of Bayesian incomplete information games in which the dynamic state dependencies of agents' strategies are Markov. This feature of aggregate state dependence allows me to investigate the role of network externality through a global interaction channel. I characterize the Bayesian Markov Perfect symmetric equilibrium by a set of fixed-point equations in conditional choice probabilities. I motivate this approach by developing a second-stage general equilibrium model of production networks in an open economy. This second stage model provides the payoff structure for the network formation and relevant Markov sufficient statistics. I propose a simple two-step maximum likelihood estimator and develop its asymptotic properties for a single large network. I apply this model to US input-output data. In counterfactual experiments, I find that network externality is quantitatively important for endogenous network formation. Furthermore, negative network externality provides an alternative explanation for network persistence. In an extension, I show how endogenous entry and exit of nodes be can jointly be formulated with endogenous network formation.

Author : Jeonghoon Mo
Publisher : Morgan & Claypool
Page : 0 pages
File Size : 50,41 MB
Release : 2009-12-15
Category : Computer networks
ISBN : 9781598299175

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This book is an introduction to Markov chain modeling with applications to communication networks. It begins with a general introduction to performance modeling in Chapter 1 where we introduce different performance models. We then introduce basic ideas of Markov chain modeling: Markov property, discrete time Markov chain (DTMC) and continuous time Markov chain (CTMC). We also discuss how to find the steady state distributions from these Markov chains and how they can be used to compute the system performance metric. The solution methodologies include a balance equation technique, limiting probability technique, and the uniformization. We try to minimize the theoretical aspects of the Markov chain so that the book is easily accessible to readers without deep mathematical backgrounds. We then introduce how to develop a Markov chain model with simple applications: a forwarding system, a cellular system blocking, slotted ALOHA, Wi-Fi model, and multichannel based LAN model. The examples cover CTMC, DTMC, birth-death process and non birth-death process. We then introduce more difficult examples in Chapter 4, which are related to wireless LAN networks: the Bianchi model and Multi-Channel MAC model with fixed duration. These models are more advanced than those introduced in Chapter 3 because they require more advanced concepts such as renewal-reward theorem and the queueing network model. We introduce these concepts in the appendix as needed so that readers can follow them without difficulty. We hope that this textbook will be helpful to students, researchers, and network practitioners who want to understand and use mathematical modeling techniques. Table of Contents: Performance Modeling / Markov Chain Modeling / Developing Markov Chain Performance Models / Advanced Markov Chain Models

Author : Thomas J. Sargent
Publisher : Cambridge University Press
Page : 265 pages
File Size : 49,41 MB
Release : 2024-04-25
Category : Business & Economics
ISBN : 1009456377

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It has become increasingly clear that economies can fruitfully be viewed as networks, consisting of millions of nodes (households, firms, banks, etc.) connected by business, social, and legal relationships. These relationships shape many outcomes that economists often measure. Over the past few years, research on production networks has flourished, as economists try to understand supply-side dynamics, default cascades, aggregate fluctuations, and many other phenomena. Economic Networks provides a brisk introduction to network analysis that is self-contained, rigorous, and illustrated with many figures, diagrams and listings with computer code. Network methods are put to work analyzing production networks, financial networks, and other related topics (including optimal transport, another highly active research field). Visualizations using recent data bring key ideas to life.

Author : Open University Course Team
Publisher :
Page : 200 pages
File Size : 11,61 MB
Release : 2009-10-21
Category : Diffusion
ISBN : 9780749251680

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This block explores the diffusion equation which is most commonly encountered in discussions of the flow of heat and of molecules moving in liquids, but diffusion equations arise from many different areas of applied mathematics. As well as considering the solutions of diffusion equations in detail, we also discuss the microscopic mechanism underlying the diffusion equation, namely that particles of matter or heat move erratically. This involves a discussion of elementary probability and statistics, which are used to develop a description of random walk processes and of the central limit theorem. These concepts are used to show that if particles follow random walk trajectories, their density obeys the diffusion equation.

Author : C.T. Leonides
Publisher : Elsevier
Page : 446 pages
File Size : 17,61 MB
Release : 2012-12-02
Category : Science
ISBN : 0323162959

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Control and Dynamic Systems: Advances in Theory and Applications, Volume 47: Manufacturing and Automation Systems: Techniques and Technologies, Part 3 of 5 deals with techniques and technologies in manufacturing and automation systems. This book discusses techniques in modeling and control policies for production networks; effective planning and control of day-to-day operations; evaluation of automated manufacturing systems; the use of Petri Nets in modeling, control and performance analysis of automated manufacturing systems; and concurrent engineering and evaluation of concurrency in engineering design. The final chapter discusses the algorithm for solving allocation problems. This book will provide a uniquely significant reference source for practitioners in the field who want a comprehensive source of techniques with significant applied implications.