Sehr geehrte Damen und Herren! Anbei übermitteln wir Ihnen die Einladung zu einem VOSTA-Freitagsseminar von Michael König, Universität Zürich, mit dem Titel "Network Formation with Local Complements and Global Substitutes" Termin Freitag, 19. Juni 2015, 11.00 Uhr Ort Oesterreichische Nationalbank Otto-Wagner-Platz 3, 1090 Wien Veranstaltungssaal, EG Abstract In this paper we analyze R&D collaboration networks in industries where firms are competitors in the product market. Firms' benefits from collaborations arise by sharing knowledge about a cost-reducing technology. By forming collaborations, however, firms also change their own competitive position in the market as well as the overall market structure. We provide a general characterization of both equilibrium networks and endogenous production choices in the form of a Gibbs measure. We find that there exists a sharp transition from sparse to dense networks, and low and high output levels, respectively, with decreasing linking costs. Moreover, there exists an intermediate range of the linking cost for which multiple equilibria arise. The equilibrium selection is a path dependent process characterized by hysteresis. We also allow for firms to differ in their technological characteristics, investigate how this affects their propensity to collaborate and study the resulting network structure. We then analyze the efficient network maximizing social welfare, and find that the efficient graph is either empty, complete or shows a strong core periphery structure. We then estimate the model using a unique dataset on R&D collaborations and show that it can reproduce the empirically observed patterns. Finally, we perform a dynamic key player analysis, where we analyze the effect on welfare and industry production when a firm is removed from the network, taking into account that the network and production can dynamically adjust to shocks. Um Ihre Rückmeldung ersuchen wir bis Mittwoch, 17. Juni 2015. Wir freuen uns auf Ihre Teilnahme und stehen für Fragen gerne zur Verfügung. Mit freundlichen Grüßen Event-Management --------------------------- Oesterreichische Nationalbank Abteilung für Öffentlichkeitsarbeit und Finanzbildung Communications and Financial Literacy Division Phone: +43-1-404 20-6620 Fax: +43-1-404 20-04 6697 E-mail: Event-Management@oenb.at<mailto:Event-Management@oenb.at>