Economists have long suspected that firm-to-firm relationships might increase price rigidity due to the use of explicit … older versus newly formed relationships. Based on additional stylized facts about a relationship’s life cycle and interviews … the average length of relationships in the economy - e.g., in a recession, when the share of young relationships declines …

older relationships, the payment choice is, therefore, only determined by the financing cost advantage of trade credit, and … all relationships rely on trade credit in the long run. The paper thereby suggests a new benefit of long-term trade … relationships: the ability to save on financing costs through the use of trade credit. …

managing motels. We develop a model of social interactions where non-work relationships facilitate the acquisition of sector …

Migration and trade are often linked through ethnic networks boosting bilateral trade. This study uses migration to … advantages, and it establishes a connection of migration to home country exports beyond bilateral networks. …

networks, such coordination may be very difficult to achieve and may depend on the communication technology and the network … structure. We examine how pre-play communication and clustering within networks affect coordination in a challenging … experimental game on eight-person networks. Free-form chat is enormously effective in achieving the non-equilibrium efficient …

through geographic, ethnic and road networks. In this paper, we analyze both theoretically and empirically the role of these … networks in the spatial diffusion of local economic shocks. We develop a network model that shows how a district’s level of …