. We approach this gap by analyzing the role of positive and negative externalities of link formation. We find general … results that relate situations of positive externalities with stable networks that cannot be 'too dense' in a well …-defined sense, while situations with negative externalities, tend to induce 'too dense' networks. …

. We approach this omission by analyzing the role of positive and negative externalities of link formation. This yields … general results that relate situations of positive externalities with stable networks that cannot be too dense in a well …-defined sense, while situations with negative externalities tend to induce too dense networks. …

and a rich set of externalities that are responsible for possible wedges between the equilibrium and the efficient … acquisition of information. First, we relate the (in)efficiency in the acquisition of information to the (in)efficiency in the use … of information and explain why efficiency in the use does not guarantee efficiency in the acquisition. Next, we show how …

This paper analyzes equlibrium and welfare for a tractable class of economies (games) with externalities, strategic … efficiency benchmark designed to address whether the equilibrium use of information is optimal from a social perspective; the … few applications, including production externalities, beauty contests, business cycles, and large Cournot and Bertrand …

cooperation in the presence of "multi-directedness", whereby people's preferences depend on their psychological motives. People …

, the less likely cooperation will be. …

cooperation in the presence of "multi-directedness," whereby people's preferences depend on their psychological motives. People …

cooperation in the presence of "multi-directedness," whereby people's preferences depend on their psychological motives. People …

, we examine the direction of the effects. Whereas indirect effects induce players to internalize externalities they impose …