Choi, Seungmoon; Masson, Virginie; Oak, Mandar; Moore, Angus - School of Economics, University of Adelaide - 2013
We develop a model of favor exchange in a network setting where the cost of performing favors is stochastic. For any given favor exchange norm, we allow for the endogenous determination of the network structure via a link deletion game. We characterize the set of stable as well as equilibrium...