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The formation of a core periphery structure in heterogeneous financial networks

Veld, Daan in 't; Leij, Marco van der; Hommes, Cars H. - 2014

Recent empirical evidence suggests that financial networks exhibit a core periphery network structure. This paper aims at giving an economic explanation for the emergence of such a structure using network formation theory. Focusing on intermediation benefits, we find that a core periphery...

Persistent link: https://www.econbiz.de/10010384387

Diffusion of behavior in network games orchestrated by social learning

Huang, Jiaping; Koster, Maurice; Lindner, Ines - 2013

The novelty of our model is to combine models of collective action on networks with models of social learning. Agents are connected according to an undirected graph, the social network, and have the choice between two actions: either to adopt a new behavior or technology or stay with the default...

Persistent link: https://www.econbiz.de/10010227321

Liquidity runs

Matta, Rafael; Perotti, Enrico - 2016 - This Draft: October 18, 2016

asset liquidity risk arises even under minimal fundamental risk. To study the role of illiquidity we introduce realistic … not available in a run, asset liquidity risk has a concave effect on run incentives, quite unlike fundamental risk. Runs … are rare when asset liquidity is abundant, become more frequent as it falls and decrease again under very low asset …

Persistent link: https://www.econbiz.de/10011556199

Exploitation and cooperation in networks

Galeotti, Andrea; Meléndez-Jiménez, Miguel A. - 2004

A fundamental question in social sciences is how trust emerges. We provide an answer which relies on the formation of social and economic relationships. We argue that behind trust lies the fact that individuals invest in connections taking into account the potential externalities networks...

Persistent link: https://www.econbiz.de/10011335196

One-way flow networks : the role of heterogeneity

Galeotti, Andrea - 2004

I study a one-way flow connections model in which players are heterogeneous with respect to values and the costs of establishing a link. I first show that values and costs asymmetries are crucial in determining the level of connectedness of a network. Interestingly, unconnected equilibria are...

Persistent link: https://www.econbiz.de/10011334833

On hierarchies and communication

Brink, René van den - 2006

Many economic organizations have some relational structure, meaning that economic agents do not only differ with respect to certain individual characteristics such as wealth and preferences, but also belong to some relational structure in which they usually take different positions. Two examples...

Persistent link: https://www.econbiz.de/10011349197

Nontransferable utility bankruptcy games

Estévez-Fernández, Arantza; Borm, Peter; … - 2014

In this paper, we analyze bankruptcy problems with nontransferable utility (NTU) from a game theoretical perspective by redefining corresponding NTU-bankruptcy games in a tailor-made way. It is shown that NTU-bankruptcy games are both coalitional merge convex and ordinal convex. Generalizing the...

Persistent link: https://www.econbiz.de/10010250500

Strategic liquidity provision in limit order markets

Back, Kerry E.; Baruch, Shmuel - In: Econometrica : journal of the Econometric Society, an … 81 (2013) 1, pp. 363-392

Persistent link: https://www.econbiz.de/10009719090

Dividing justly in bargaining problems with claims

Gächter, Simon; Riedl, Arno - 2004

Theoretical research on claims problems has concentrated on normative properties and axiomatizations of solution concepts. We complement these analyses by empirical evidence on the predictability of three classical solution concepts in a bankruptcy problem. We examine both people's impartial...

Persistent link: https://www.econbiz.de/10011335222

When does predation dominate collusion?

Wiseman, Thomas - In: Econometrica : journal of the Econometric Society, an … 85 (2017) 2, pp. 555-584

Persistent link: https://www.econbiz.de/10011778674