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We introduce the Input Rank as a network measure of relevance of direct and indirect suppliers in Global Value Chains. We conceive an intermediate input to be more relevant for a downstream buyer if a negative shock to that input's productivity affects that buyer more. In particular, in our framework, the relevance of any input depends on: (i) the network position of the supplier relative to the buyer,...
In this paper we study a model of weighted network formation. The bilateral interaction is modeled as a Tullock contest game with the possibility of a draw. We describe stable networks under different concepts of stability. We show that a Nash stable network is either the empty network or the complete network. The complete network is not immune to bilateral deviations. When we allow for limited farsightedness,...
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