This paper considers a model of economic network characterized by an endogenous architecture and frictions in the … relations among agents as described in Bala and Goyal (2000). We propose a similar network model with the difference that … frictions in the relations among agents are endogenous. Frictions are modeled as dependent on the result of a coordination game …

determines the level of decay of each link. We address the issues of coordination (long-run equilibrium selection) and network …This paper studies an evolutionary model of network formation with endogenous decay, in which agents benefit both from … direct and indirect connections. In addition to forming (costly) links, agents choose actions for a coordination game that …