This paper addresses the question of delegation in a principal-agent setting with asymmetric information. If the person who has the power to act, the principal, doesn't have the necessary information to make the best possible decision, she can address herself to someone, the agent, who has this...

We examine the formation of networks among a set of players whose payoffs depend on the structure of the network. We focus on games where players may promise or demand transfer payments when forming links. If players may only make such transfers on the links they are directly involved with, then...