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Pairwise stability (Jackson and Wolinsky, 1996) is the standard stability concept in network formation. It assumes … agents are farsighted, related stability concepts have been proposed. We design a simple network formation experiment to test …
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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 …
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We study the formation of R&D networks when each firm benefits from the research done by other firms it is connected to. Firms can be either myopic or farsighted when deciding about the links they want to form. We propose the notion of myopic-farsighted stable set to determine the R&D networks...
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