Recent empirical evidence suggests that financial networks exhibit a core periphery network structure. This paper aims at giving an economic explanation for the emergence of such a structure using network formation theory. Focusing on intermediation benefits, we find that a core periphery...

Introduction -- Networks : concepts and empirics -- Games on networks -- Coordination and cooperation -- Social learning -- Social networks in labor markets -- Strategic network formation : concepts -- One-sided link formation -- Two-sided link formation -- Research collaboration among firms

Biographical note: GoyalSanjeev: Sanjeev Goyal is professor of economics at the University of Cambridge and a fellow of Christ’s College. He is one of the pioneers in the economic study of networks, and his work has appeared in leading international journals such as "Econometrica, Journal of...