Networks in markets and the propensity of companies to collaborate: An empirical test of three mechanisms

We propose and test hypotheses about three endogenous mechanisms that may be driving the observed network structure of producers' markets. We use data that we have collected on collaborative network ties among producers. Estimates of Exponential Random Graphs Models (ERGM) support our hypotheses.

► Collaborative network ties are more likely between reciprocating companies. ► Collaborative network ties are more likely between companies sharing the same partners. ► Bridging ties toward companies linked to many unconnected third parties are unlikely.