We study the formation of multilayer networks where payoffs are determined by the degrees in each network and explore distinct network relationships by allowing for inter-network and intra-network spillovers through five properties: supermodularity and submodularity for internetwork spillovers,...

We examine how trade sanctions can be imposed effectively in a trading network. We focus on three factors that affect trade sanctions: a country’s endowment, distance between trading countries, and connectivity in the network. Our models explain several empirical observations: (i) sanctions...