neighbors in the social network. The same activities often exert externalities that cumulate in "stocks" affecting agents … network of social relations, as agents display strategic substitution with distance-two neighbors. We show that behavior is … behavior and key-players tend to move to the periphery of the network, and we discuss the effect of close-knit communities and …

This paper presents a model of endogenous network formation in the presence of peer effects for a general class of … agents move simultaneously. I find that equilibrium networks display - other than the complete and the empty network - a core …, depending on the network that arises in equilibrium. The mulitiplicity of equilibria serves as an explanation for large …

This paper develops a simple model in which a social hierarchy emerges endogenously when agents form a network for …, as well as their value function, increases (strictly) concavely in the total activity of their neighbours in the network … endogenise network formation, equilibria become strongly structured: more active players have more neighbours, i.e. a higher …