expenditure shocks. This paper analyzes which risk-sharing networks can be sustained in the long run when individuals are far … insurance agreement, myopic and farsighted agents form the same risk-sharing networks. For intermediate costs, farsighted agents … form efficient networks while myopic agents don't. …

stability. A set of networks GK is a level-K farsightedly stable set if three conditions are satisfied. First, external … of a level-K farsightedly stable set. There is a unique level-1 farsightedly stable set G1 consisting of all networks … level-K farsighted stability and efficiency of networks. We show the tractability of the concept by applying it to a model …

outside her coalition. To predict the coalitional networks that are going to emerge at equilibrium we propose the concepts of …

important. Interestingly, the other possible stable networks all have the realistic property that some firms decide not to …, strong stability, which imposes networks to be immune to coalitional deviations. …

outside his coalition. To predict the coalitional networks that are going to emerge at equilibrium we propose the concept of …

framework.Under single-homing there exists an interior equilibrium where networks exhibit asymmetric sizes and both firms enjoy …