networks form, the impact of network structure on agents' outcomes, and the evolution of networks over time. For this purpose …, we combine a network game introduced by Ballester et al. [2006], where the Nash equilibrium action of each agent is … proportional to her Bonacich centrality, with an endogenous network formation process. Links are formed on the basis of agents …

, I provide a proposition that generalizes the results of these two models by stating that: (i) Strict Nash network … network as in Billand et al (2011). This proposition requires that a certain restriction on link formation cost (called …