We study a model in which heterogeneous agents first form a trading network where link formation is costless. Then, a … a trading network is pairwise stable if and only if it is a core periphery network where the core consists of all weak …

emerge at equilibrium. We define the notion of coalitional network to represent a network and a coalition structure, where … the network specifies the nature of the relationship each individual has with his coalition members and with individuals … contractual stability which requires that any change made to the coalitional network needs the consent of both the deviating …

The paper examines the formation of free trade agreements (FTAs) as a network formation game. We consider a general n … all countries are symmetric, a complete global free trade network is pairwise stable and it is the unique stable network …

subsidy treatment do not differ significantly across both instruments. However, we observe overinvestment in all three …