communication or spillovers via the links between them. Linking decisions are based on network-dependent marginal payoff and a … the other agents in the network. Agents derive payoff from having access to the information of others through … network independent noise capturing exogenous idiosyncratic effects. Moreover, agents have a limited observation radius when …

We develop a dynamic network formation model that can explain the observed nestedness in real-world networks. Links are … identify the networks to which the network formation process converges and find that they are nested split graphs. We … by real-world networks. Using four different network datasets, we empirically test our model and show that it fits well …

The paper proposes a game of weighted network formation in which each agent has a limited resource to form links of …, uniquely predicts the equilibrium values of each agent's network investment and utility level, as well as the ratio of any two …

We consider a natural generalization of Jackson and Wolinsky's (J Econ Theory 71:44- 74, 1996) connections model where … that amount. The information that the nodes receive through the network is the revenue from investments in links. We prove … maximizing the aggregate profit, are still the all-encompassing star and the complete network, with the sole and rare exception …

if the network is 2-connected: that is, if no player can prevent the flow of information to another. In contrast, the …