We examine how trade sanctions can be imposed effectively in a trading network. We focus on three factors that affect trade sanctions: a country’s endowment, distance between trading countries, and connectivity in the network. Our models explain several empirical observations: (i) sanctions...

Economic agents are typically connected in multiple interrelated networks (multiplex). We examine how an initial “seed” network prompts link formation on the multiplex and shapes its equilibrium topology. In a duplex, positive (negative) externalities emanating from strategic complementarity...

Why do some civil wars terminate soon, with victory of one party over the other? What determines if the winner is the incumbent or the rebel group? Why do other conflicts last longer? We propose a simple model in which the power of each armed group depends on the number of combatants it is able...

Why do some civil wars terminate soon, with victory of one party over theother? What determines if the winner is the incumbent or the rebel group?Why do other conflicts last longer? We propose a simple model in whichthe power of each armed group depends on the number of combatants itis able to...

In an oligopoly, prior to competing in the market, firms have an opportunity to form pair-wisecollaborative links with other firms. These pair-wise links involve a commitment of resources andlead to lower costs of production of the collaborating firms. The collection of pair-wise linksdefines a...

In recent years, there has been a great deal of research on the relative merits of multilateralism and bilateralism and their implications for the nature of the trading regime between countries. In this paper we explore the scope of bilateral free-trade agreements as a foundation for free trade,...

In an oligopoly, prior to competing in the market, firms have an opportunity to form pair-wise collaborative links with other firms. These pair-wise links involve a commitment of resources and lead to lower costs of production of the collaborating firms. The collection of pair-wise links defines...