We study the evolution of R&D networks in a Cournot model where firms may lower marginal costs due to bilateral R&D collaborations. Stochastically stable R&D networks exhibit the dominant group architecture, and, contrary to the existing literature, generically unique predictions about the size...

In this article we consider a model where boundedly rational agents choose both which coordination game to play and what action to take in that game, when their information and mobility are limited and changes over time. We completely characterize both short-run and long-run outcomes. There are...

We study the process of equilibrium selection in games when players have social preferences of the type discussed, among others, by Rabin (1993) and Segal and Sobel (2007). To this end, we employ a standard noisy version of the best response dynamics. We obtain several results concerning some...

Information decay in networks generates two effects. First, it differentiates how well informed different players within the same component are, and therefore how attractive they are to sponsor links to. Second, players may prefer to sponsor links to players they are already connected to. By...