Hiller, Timo - In: Theoretical economics : TE ; an open access journal in … 12 (2017) 3, pp. 1057-1087
I propose a simple model of signed network formation, where agents make friends to extract payoffs from weaker enemies. The model thereby accounts for the interplay between friendship and alliance on one hand and enmity and antagonism on the other. Nash equilibrium configurations are such that...