This paper studies how systemic risk can appear when rational agents establish derivative contracts in a fixed network … spread the risks throughout the network and harmonize the amount of capital agents tie up respectively to their exposure … occurs for a large class of networks and behaviors …

The Lightning Network is a decentralized payment network built on top of a block-chain, in which intermediary nodes … provide a trust-less routing service for end users. We provide an overview of the current state of the network and show that … strategically on the network. Those strategic interactions between nodes can be described by a Bertrand competition model with …

This paper proposes an empirical model of network formation, combining strategic and random networks features. Payoffs …. Under mild assumptions, the network formation process is a potential game and converges to an exponential random graph model … (ERGM), generating directed dense networks. I provide new identification results for ERGMs in large networks: if link …

In this paper, we examine possible types of network formation among immigrants in the diaspora and between those … international trade between the different countries, depending on the types of networks formed. We present possible applications of … network structure on the country of origin, such as on international trade. We find that when the size of the diaspora is …

This paper presents a model of strategic network formation with local complementarities in effort levels and positive …-sided link formation. (Pairwise) Nash equilibrium networks are shown to be nested split graphs, which are a strict subset of core …-periphery networks. The relevance of the convexity of the value function in obtaining these structures is highlighted. In equilibrium …

only efficient networks are the complete and the empty network. Furthermore, there exists a range of linking cost such that …This paper presents a simple model of strategic network formation with local complementarities in effort levels and … creation. In both cases (pairwise) Nash equilibrium networks are nested split graphs, which are a strict subset of core …

studying econometric methods for the analysis of social networks. We begin by providing a common framework for models of social … effects, a class that includes the 'linear-in-means' local average model, the local aggregate model, and models where network …/quasi-experimental data. We then discuss models of network formation, drawing on a range of literatures to cover purely predictive models …