In a fully liberalized postal market, two business models will be possible for a new postal operator: (1) access: where the firm performs the upstream operations and uses the incumbent’s network for final delivery and (2) bypass where the competing firm controls the entire supply chain and...

We analyze the formation of partnerships in social networks. Players need favors at random times and ask their neighbors in the network to form exclusive long‐term partnerships that guarantee reciprocal favor exchange. Refusing to provide a favor results in the automatic removal of the...