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Persistent link: https://www.econbiz.de/10010243602
In this paper, we show both theoretically and empirically that the size of over-the-counter (OTC) markets can be reduced without affecting individual net positions. First, we find that the networked nature of these markets generates an excess of notional obligations between the aggregate gross...
Persistent link: https://www.econbiz.de/10011984827
In this paper, we show both theoretically and empirically that the size of over-the-counter (OTC) markets can be reduced without affecting individual net positions. First, we find that the networked nature of these markets generates an excess of notional obligations between the aggregate gross...
Persistent link: https://www.econbiz.de/10011976943
This paper tackles the issue of self-selection in social interactions models. I develop a theory of sorting and behavior, when the latter is subject to social influences, extending the model developed by Brock and Durlauf (2001a, 2003) to allow for equilibrium group formation. Individuals choose...
Persistent link: https://www.econbiz.de/10005704499
A striking feature of financial market behaviour in recent years has been the low level of price volatility over a wide range of financial assets and markets. The issue has attracted the attention of central bankers and financial regulators due to the potential implications for financial...
Persistent link: https://www.econbiz.de/10005770790
reassignments of certain student groups into new peer groups, we also explore the reasons why herding occurs. The preponderance of … evidence suggests that social learning, as opposed to network externalities, is the key driver for herding behavior. …
Persistent link: https://www.econbiz.de/10012519264
We study the problem of information sharing in oligopoly, when sharing decisions are taken before the realization of private signals. Using the general model developed by Raith (1996), we show that if firms are allowed to make bilateral exclusive sharing agreements, then some degree of...
Persistent link: https://www.econbiz.de/10005057151
Consider a population of n players playing a variant of Myerson's network formation model. Each player simultaneously chooses k other players he would want to be connected to. If two players are in each other's choice set, a matching occurs. We call the outcome of the network formation model a...
Persistent link: https://www.econbiz.de/10013006811
We introduce the Speculative Influence Network (SIN) to decipher the causal relationships between sectors (and/or firms) during financial bubbles. The SIN is constructed in two steps. First, we develop a Hidden Markov Model (HMM) of regime-switching between a normal market phase represented by a...
Persistent link: https://www.econbiz.de/10013012557
A pressing reality which companies must deal with is the accelerated emergence of the networks, physical or virtual …, which play an increasingly important role in business. Networks configuration determines the markets dynamics, business … organisation. However, the access to knowledge is not possible but through networks. In the knowledge networks, the generation of …
Persistent link: https://www.econbiz.de/10010860004