Galeotti et al. (2006, [2]) show that all minimal networks can be strict Nash in two-way flow models with full parameter heterogeneity while only inward pointing stars and the empty network can be strict Nash in the homogeneous parameter model of Bala and Goyal (2000, [1]). In this note we show...

In this paper, we examine the role played by heterogeneity in the connection model. In sharp contrast to the homogeneous cases we show that under heterogeneity involving only two degrees of freedom, all networks can be supported as Nash or efficient. Moreover, we show that there does not always...

We consider a multimarket framework where a set of firms compete on two interrelated oligopolis- tic markets. Prior to competing in these markets, firms can spy on others in order to increase the quality of their product. We characterize the equilibrium espionage networks and networks that...

In this note we provide conditions which ensure the existence of Nash networks in One-way flow models with cost heterogeneity.

In this note we introduce different levels of decay in the Goyal, Galeotti and Kamphorst (GGK) insider-outsider model of network formation. First, we deal with situations where the amount of decay is sufficiently low to avoid superfluous connections in strict Nash networks and we examine the...

This paper addresses the existence of Nash networks for the one-way flow model of Bala and Goyal (2000) in a number of different settings. First, we provide conditions for he existence of Nash networks in models where costs and values of links are heterogenous and players obtain resources from...