We introduce a spatial cost topology in thenetwork formation model analyzed by Jackson andWolinsky, Journal of Economic Theory 71 (1996), 44--74. This cost topology mightrepresent geographical, social, or individualdifferences. It describes variable costs ofestablishing social network...

This dissertation attempts to construct a theory which states that forms of enterprise are determined to a large extent by potential market failure. In the four independent, but closely interrelated chapters, I derive this hypothesis through theoretical reasoning, and suppose it by referring to...