We study the formation of networks in environments where agents derive benefits from other agents directly linked to … networks with undirected links (e.g. epidemics, underground resistance organizations, trade networks) where we find that stable … networks are comprised of completely connected disjoint subnetworks. Then, we consider networks with directed links and we find …

financial network where good firms enjoy direct and indirect benefits from linking with one another. Bad risks benefit from … having a connection with a good firm, but they are a cost to both direct and indirect connections. In efficient networks the … good risks should form large connected components with very few bad risks attached. The equilibrium networks, on the other …

Maintaining the security of critical infrastructure networks is vital for a modern economy. This paper examines a game …-theoretic model of attack and defense of a network in which the defender's objective is to maintain network connectivity and the … attacker's objective is to destroy a set of nodes that disconnects the network. The conflict at each node is modeled as a …

networks in the spatial diffusion of local economic shocks. We develop a network model that shows how a district's level of … through geographic, ethnic and road networks. In this paper, we analyze both theoretically and empirically the role of these … prosperity is related to its position in the network. The network model's first-order conditions are used to derive an …