We study a model of network formation where the benefits from connections exhibit decreasing returns and decay with network distance. We show that the unique equilibrium network is a periphery-sponsored star, where one player, the center, maintains no links and earns a high payoff, while all...

This paper sheds light on the links between media and political polarization by looking at the introduction of broadcast TV in the US. We provide causal evidence that broadcast TV decreased the ideological extremism of US representatives. We then show that exposure to radio was associated with...

Early results of evolutionary game theory showed that the risk dominant equilibrium is uniquely selected in the long run under the best-response dynamics with mutation. Bergin and Lipman (1996) qualified this result by showing that for a given population size, the evolutionary process can select...

"We develop a model of informal risk-sharing in social networks, where relationships between individuals can be used as social collateral to enforce insurance payments. We characterize incentive compatible risk-sharing arrangements and obtain two results. (1) The degree of informal insurance is...