We introduce a test for whether agents' preferences over network structure are interdependent. Interdependent … directed by other agents. Our model also incorporates agent-specific in- and out-degree heterogeneity and homophily on … observable agent attributes. This introduces 2N + K2 nuisance parameters (N is number of agents in the network and K the number …

heterogeneity) as well as homophily/heterophily across the K types of agents. In contrast, the network benefit function allows agents …Consider a setting where N players, partitioned into K observable types, form a directed network. Agents' preferences … over the form of the network consist of an arbitrary network benefit function (e.g., agents may have preferences over their …