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IZA
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Coordination Failures in Network Migration
by
Axel Heitmueller
(April 2003)
published in: Manchester School, 2006, 74(6), 701-710
Abstract:
Previous migration facilitates future population moves, a phenomenon called network
migration. However, thus far, network migration has been closely linked to network
externalities. In contrast, this paper argues that the incumbent migration population can
actively impact on future migration flows, yet fails to achieve a Pareto optimal network size
due to coordination failures. In short, it stresses the active role incumbents take in the
provision of network effects and, second, it provides theoretical evidence that self-perpetuating
and sustained immigration is not at odds with rational acting individuals and
must not simply be ascribed to pure network externalities.
Text: See Discussion Paper No. 770 
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