This discussion paper resulted in a publication in the 'Review of Network Economics' (forthcoming).<P> Agents involved … in the formation of a social or economic network typically face uncertainty about the benefits of creating a link …. However, the interplay of such uncertainty and risk attitudes has been neglected in the network formation literature. We …

When workers send applications to vacancies they create a network. Frictionsarise because workers typically do not know … frictionaffects network formation, while the second coordination friction affects networkclearing. We show that those frictions and … arise and the number of matches on a given network. Equilibria that exhibitwage dispersion are inefficient in terms of …

are connected according to an undirected graph, the social network, and have the choice between two actions: either to … network. (2) Average inclination governs collective adoption behavior. (3) Initial inclinations determine the critical mass of … network and other parameters. Given the complexity of the system we use a standard technique for estimating the solution. …

geographically clustered business activities, in order to stimulate regional innovation. Underlying the relation between clusters and … innovation is the assumption that co-located firms engaged in innovative activities benefit from knowledge that diffuses locally …

</I>.<P> This paper characterizes the set of equilibrium networks in the two-way flow model of network formation with small decay …

We investigate contributions to the provision of public goods on a network when efficient provision requires the … formation of a star network. We provide a theoretical analysis and study behavior in a controlled laboratory experiment. In a 2x … efficiency of the outcome. Moreover, in large groups social benefits encourage the formation of superstars: star networks in …

interpret this finding as knowledge spillovers from external to internal projects, as the limited number of external projects …

between spillovers, R&D efforts, and surpluses is non-monotonic and dependent on both the relative and absolute efficiency of …We study a stochastic dynamic game of process innovation in which firms can initiate and terminate R&D efforts and … production at different times. We discern the impact of knowledge spillovers on the investments in existing markets, as well as …

convexity and efficient set characterization results on SD efficiency of a given portfolio relative to adiversified set of … Post (2003) and expand the SSD efficiency criteriadeveloped by Dybvig and Ross (1982) onto the Third Order Stochastic …