We develop a network model whose links are governed by banks' optmizing decisions and by an endogenous tâtonnement … evolution of the network configuration under various prudential policy regimes, to measure banks' contribution to systemic risk …

realistic interbank networks that preserve important characteristics of the original interbank market. The method loads the most … probable links with the largest exposures consistent with the total lending and borrowing of each bank, leading to networks …

into account the potential externalities networks produce. Once social ties are in place, these externalities shape the … that the individual's incentives depend on the architecture of the network as well as on the position of the individual … within the network. In particular, when an efficient interaction requires players to mutually cooperate, efficient social …

network that connects them. We find that information supports cooperation by increasing trust between players, and obtain the … 'radius of trust': an endogenous network listing the potentially cooperative relationships between pairs of players in a … community. We identify two aspects of trust, which relate to the network structure in different ways. Where trust depends on the …

The paper analyzes a dynamic model of rational strategic learning in a network. It complements existing literature by … network. We show that the delay in information transmission caused by incomplete network structures may induce players to … increase own experimentation efforts. As a consequence a complete network can fail to be optimal even if there are no costs for …

We analyze R&D collaboration networks in industries where firms are competitors in the product market. Firms' benefits … characterization of both equilibrium networks and endogenous production choices in the form of a Gibbs measure. We analyze the … efficient network maximizing social welfare, and find that the efficient graph is either empty, complete or shows a strong core …

neighbors in the social network. The same activities often exert externalities that cumulate in "stocks" affecting agents … network of social relations, as agents display strategic substitution with distance-two neighbors. We show that behavior is … behavior and key-players tend to move to the periphery of the network, and we discuss the effect of close-knit communities and …

in the context of a network formation game (where links can be interpreted as friendships in a social network … acquiring the information with others) through a percolation process over the equilibrium network. Privacy concerns are modeled … mixed-strategy equilibria. Our two main results show that, as in many real-life examples, the resulting equilibrium networks …