We model how excess demand or excess supply can be generated in the presence of a social network of interactions, where …

preferences and the rules governing network formation. By reformulating Chwe's basic result on the nonemptiness of farsightedly … governing network formation), there exists a farsightedly stable directed network. We also introduce the notion of a Nash … network relative to a given supernetwork, as well as the notions of symmetric, nonsimultaneous, and decomposable supernetworks …

We examine the formation of networks among a set of players whose payoffs depend on the structure of the network. We … efficient network to be supportable as an equilibrium. In cases where transfers can be made contingent on the network, then any … efficient network is supportable as an equilibrium. We also consider a refinement of equilibrium that allows pairs of players to …

yet decide whether to subscribe to a network, and subscribers derive benefits in future periods depending on the network … prevalent in markets with network externalities. Asymmetric \ea\ may exist, but we show that they, if exist, converge to the …