Showing 1 - 10 of 567
We investigate the trade-off between the risk-sharing gains enjoyed by more interconnected firms and the costs resulting from an increased risk exposure. We find that when the shock distribution displays "fat" tails, extreme segmentation into small components is optimal, while minimal...
Persistent link: https://www.econbiz.de/10010260030
In a social network in which friendly and rival bilateral links can be formed, how do alliances between decision-makers form, and what determines whether a conflict will arise? We study a network formation game between ex-ante symmetric players in the laboratory to examine the dynamics of...
Persistent link: https://www.econbiz.de/10012603859
We investigate the trade-off between the risk-sharing gains enjoyed by more interconnected firms and the costs resulting from an increased risk exposure. We find that when the shock distribution displays “fat” tails, extreme segmentation into small components is optimal, while minimal...
Persistent link: https://www.econbiz.de/10013055377
We introduce a simple two-stage game of endogenous network formation and information sharing for reasoning about the optimal design of social networks like Facebook or Google. We distinguish between unilateral and bilateral connections and between targeted and collective information sharing....
Persistent link: https://www.econbiz.de/10013055757
Interaction among multiple agents to exchange resources or information is interpreted as network interaction in the field of social sciences. The strategic formation of these network links has been formalized both as cooperative and noncooperative games. This paper analyses the formation of such...
Persistent link: https://www.econbiz.de/10012846384
In this paper, we study, how social relations among the firm owners, employees influence their decision to form R&D collaborations with each other. We consider an oligopoly market set-up with n homogeneous firms. Each firm has a representative individual (owner/manager). We examine, how...
Persistent link: https://www.econbiz.de/10012846388
I study social learning in networks with information acquisition and choice. Bayesian agents act in sequence, observe the choices of their connections, and acquire information via sequential search. Complete learning occurs if search costs are not bounded away from zero and the network is...
Persistent link: https://www.econbiz.de/10012852060
This paper proposes a novel regulatory framework for financial interconnectedness and introduces a new concept: “self-contained networks”. In networks where each bank is too costly for other banks to let fail, banks endogenously rescue each other. Such networks are self-contained since they...
Persistent link: https://www.econbiz.de/10012853574
There are many social and economic situations where two or more communities need to be integrated in an efficient and stable way that facilitates overall resource access throughout the network. We study structures for efficient integration of multi-community networks where building bridges...
Persistent link: https://www.econbiz.de/10012854148
We study the endogenous network formation of bilateral and multilateral trade agreements by means of hypergraphs and introduce the equilibrium concept of multilateral stability. We consider multi-country settings with a firm in each country that produces a homogeneous good and competes as a...
Persistent link: https://www.econbiz.de/10012857205