We consider a dynamic model of network formation where agents form and sever links based on the centrality of their …

We develop a dynamic network formation model that can explain the observed nestedness in real-world networks. Links are … identify the networks to which the network formation process converges and find that they are nested split graphs. We … by real-world networks. Using four different network datasets, we empirically test our model and show that it fits well …

real-world networks. We also find that there exists a sharp transition in efficiency and network density from highly … networks form, the impact of network structure on agents' outcomes, and the evolution of networks over time. For this purpose …, we combine a network game introduced by Ballester et al. (2006), where the Nash equilibrium action of each agent is …

When workers send applications to vacancies they create a network. Frictions arise if workers do not know where other … workers apply to (this affects network creation) and firms do not know which candidates other firms consider (this affects … network clearing). We show that those frictions and the wage mechanism are in general not independent. Equilibria that exhibit …

environment that allows ideas to cross firm boundaries enhances the rate of innovation and creates a symbiotic relationship …

We present a network model of the interbank market in which optimizing risk averse banks lend to each other and invest … interlinkages and fire sale externalities. The resulting network configuration exhibits a core-periphery structure, dis …-assortative behavior and low density. Within this framework we analyze the effects of prudential policies on the stability/efficiency trade …

Innovative start-ups and venture capitalists are highly clustered, benefiting from localized spillovers: Silicon Valley … significant spillovers, it becomes optimal for an innovative start-up and its financier to adopt contracts with fewer … contingencies: these contracts maximize their ability to extract (part of) the surplus they generate through positive spillovers …