homophily) and from the existence of unobservables across agents that are correlated. In the absence of experimental variation …

We study a model of social learning in networks where agents have heterogeneous preferences, and neighbors tend to have … similar preferences---a phenomenon known as homophily. Using this model, we resolve a puzzle in the literature: theoretical … models predict that preference diversity helps learning, and homophily slows learning, while empirical work suggests the …

This paper investigates the patent licensing networks formed by competing firms. Assuming that licensing agreements can … of independent patents, we fully characterize the bilaterally efficient networks and find that when the cost reduction … efficient one. We also show that the bilaterally efficient networks can be sustained as subgame-perfect Nash equilibria with …

for assessing the influence of networks on demand and revenue patterns in electronic commerce, and provides new empirical …