Showing 1 - 10 of 3,383
We study a model of network formation and start-up financing with endogenous entrepreneurial type distribution. A hub … firm admits members to its network based on signals about entrepreneurs' types. Network membership is observable, which … allows lenders to offer different interest rates to network and stand-alone entrepreneurs. We show that a network outcome can …
Persistent link: https://www.econbiz.de/10010270476
network formation. While the physics/applied mathematics approach is capable of reproducing most observed networks, it does … does a poor job in matching real-world networks. We also analyze behaviors on networks, which take networks as given and …
Persistent link: https://www.econbiz.de/10010320417
network formation. While the physics/applied mathematics approach is capable of reproducing most observed networks, it does … does a poor job in matching real-world networks. We also analyze behaviors on networks, which take networks as given and …
Persistent link: https://www.econbiz.de/10010275834
points in system behavior. Our mathematical analysis demonstrates that network density directly determines trust propagation … effects in system stability. By developing differential equations governing trust evolution and applying network diffusion … mathematical framework enables precise quantification of correlation penalties, network effects, and trust thresholds with …
Persistent link: https://www.econbiz.de/10015394493
network. Interestingly, unconnected equilibria are asymmetric and central players may emerge. Second, I show that non …
Persistent link: https://www.econbiz.de/10010325361
Since the seminal contribution of Jackson & Wolinsky 1996 [A Strategic Model of Social and Economic Networks, JET 71, 44-74] it has been widely acknowledged that the formation of social networks exhibits a general conflict between individual strategic behavior and collective outcome. What has...
Persistent link: https://www.econbiz.de/10010272547
This paper studies the properties of convexity (concavity) and strategic complements (substitutes) in network formation … shown that there always exists a pairwise stable network as long as the utility function of each player satisfies convexity … in own links and strategic complements. For network societies with a profile of utility functions satisfying concavity in …
Persistent link: https://www.econbiz.de/10010272600
Many economic organizations have some relational structure, meaning that economic agents do not only differ with respect to certain individual characteristics such as wealth and preferences, but also belong to some relational structure in which they usually take different positions. Two examples...
Persistent link: https://www.econbiz.de/10010325156
Ostrovsky [10] develops a theory of stability for a model of matching in exogenously given networks. For this model a … substitutability and cross side complementarity. Given this preference domain I analyze the interplay between properties of the network … stable network, and (v) the existence of an efficient and individually stable network. These equivalences also provide a …
Persistent link: https://www.econbiz.de/10010270419
When workers send applications to vacancies they create a network. Frictions arise if workers do not know where other … workers apply to (this affects network creation) and firms do not know which candidates other firms consider (this affects … network clearing). We show that those frictions and the wage mechanism are in general not independent. Equilibria that exhibit …
Persistent link: https://www.econbiz.de/10010277402