share of cooperators increases with the speed at which the network evolves, increases with the radius of interaction and …

We examine the formation of networks among a set of players whose payoffs depend on the structure of the network. We … network or only on the link itself. A final aspect is whether or not players can pay other players to refrain from forming … related either to accounting for a specific type of externality, or to dealing with the combinatorial nature of network …

Network structure has a significant role in determining the outcomes of many socioeconomic relationships, including the … antagonistic ones. In this paper we study a situation in which agents, embedded in a network, simultaneously play interrelated … bilateral contest games with their neighbors. Interrelatedness of contests induces complex local and global network effects. We …

particular, if the linking costs are not too low and not too high, at least one such network is pairwise stable. Moreover, in …

This paper reports results from a laboratory experiment on network formation among heterogeneous agents. The … experimental design extends the Bala-Goyal (2000) model of network formation with decay and two-way flow of benefits by allowing … private information. In all treatments, the (efficient) equilibrium network has a “star” structure. With homogeneous agents …

This paper presents a game-theoretic model of network formation, which allows agents to enter bilateral alliances and …

Pairwise stability (Jackson and Wolinsky, 1996) is the standard stability concept in network formation. It assumes … agents are farsighted, related stability concepts have been proposed. We design a simple network formation experiment to test …

We make four main contributions to the theory of network formation. (1) The problem of network formation with … farsighted agents can be formulated as an abstract network formation game. (2) In any farsighted network formation game the … and persist if individuals behave farsightedly in playing the network formation game. (3) A von Neumann Morgenstern stable …

implications for contagion risk. In particular, we model a network formation process in the banking system. Banks form links order … to reduce the risk of contagion. The network is formed endogenously and serves as an insurance mechanism. We show that … banks manage to form networks that are resilient to contagion. Thus, in an equilibrium network, the probability of contagion …