Ties between similar partners in economic and financial networks are often attributed to concerns about agency costs. In this paper, we distinguish the underlying motives for tie formation between sets of potential partners in the network, thus informing the relative importance of agency cost...

Ties between similar partners in economic and financial networks are often attributed to concerns about agency costs. In this paper, we distinguish the underlying motives for tie formation between sets of potential partners in the network, thus informing the relative importance of agency cost...

Existing models of the size and scope of investment activity traditionally assume an infinite pool of ex-ante identical projects, despite the fact that managers often face a limited choice of projects that vary in quality. In this paper, we investigate optimal project selection in a model in...