We study a model of network formation and start-up financing with endogenous entrepreneurial type distribution. A hub firm admits members to its network based on signals about entrepreneurs' types. Network membership is observable, which allows lenders to offer different interest rates to...

Selfishness, harming others and benefiting oneself, serves by mistake as human basic motivation in social science research. Even today, such a mistake is still unknown to academic circles; instead, it has become a common knowledge. In fact, selfishness is not a human motivation; it is one type...

In ultimatum game experiments, most subjects will reject very unfair distribution suggestions, such as 80:20 splits of given money. That is, economics experiments have disproved the hypothesis of economic man which insists that rational humans will always maximize their utility. However,...