Social networks display homophily and clustering, and are usually sparse. I develop and estimate a structural model of strategic network formation with heterogeneous players and latent community structure, whose equilibrium networks are sparse and exhibit homophily and clustering. Each player...

This paper develops a framework to structurally estimate pairwise stable networks with nonnegative externality. We characterize pairwise stable equilibria as a fixed point of a certain mapping and show that the set of pairwise stable equilibria with nonnegative externality is a complete lattice....

We model network formation as a simultaneous game of incomplete information, allowing linking decisions to depend on the structure of the network as well as the attributes of agents. When the data is rationalized by a symmetric equilibrium, meaning observationally equivalent agents choose the...

In many firms, production requires the division of staff into teams. If only team performance is observable, moral hazard in teams is inevitable. This variant of moral hazard can be overcome or exacerbated by the interpersonal relationships among team members. I investigate how the division of...

This paper provides a new empirical perspective for analysing the role of social networks for an economic geography approach on regional economic growth by constructing large-scale networks from employee-employee co-occurrences in plants in the entire Swedish economy 1990-2008. We calculate the...

This paper addresses parameter estimation of spatial regression models incorporating spatial lag. These models are very important in spatial econometrics, where spatial interaction and structure are introduced into regression analysis. Because of spatial interactions, observations are not truly...

We analyze R&D collaboration networks in industries where firms are competitors in the product market. Firms' benefits from collaborations arise by sharing knowledge about a cost-reducing technology. By forming collaborations, however, firms also change their own competitive position in the...

We investigate the network topology of a comprehensive data set of the world-wide population of corporate entities. In particular, we have extracted information on the boards of all companies listed in Bloomberg's archive of company profiles in October, 2015, a total of almost 100; 000 firms. We...