derivatives, arguably to create a less complex and more transparent interbank network that is less prone to financial … instabilities. We construct a network model with endogenous exposures and show that the core and the periphery react asymmetrically …-regulation. This endogenous network reaction to the regulation creates the unanticipated effect of reducing financial stability through …

links that also propagate costly contagion. Endogenously, second-order contagion risk constrains the concentration of … contagion risk, subsequently increasing concentration. However, if these protective measures are imperfect or costly, shocks to …

agents form a core-periphery network, with core members acting as conduits of information on behalf of their stakeholders …, effectively intermediating all transmissions of information within the network. …

to migrate transmission activity from existing social networks to a core-periphery insider network. A small group of …

This paper introduces a simple model of endogenous network formation and systemic risk. In the model, firms form joint … shocks increases systemic risk. Third, the network formed critically depends on the correlation between shocks to links. As a …