In this note we provide conditions which ensure the existence of Nash networks in One-way flow models with cost heterogeneity.

This paper examines directed networks in which the payoff of a player depends on the total number links formed by her and the other players. After showing that these networks with global spillovers may not always have Nash equilibria in pure strategies, we introduce two additional properties for...

In this note we provide conditions which ensure the existence of Nash networks in One-way flow models with cost heterogeneity.

We study the formation of mutual insurance networks in a model where every agent who obtains more resources gives a fixed amount of resources to all agents who have obtained less resources. The low resource agent must be directly linked to the high resource agent to receive this transfer. We...

Galeotti et al. (2006, [2]) show that all minimal networks can be strict Nash in two-way flow models with full parameter heterogeneity while only inward pointing stars and the empty network can be strict Nash in the homogeneous parameter model of Bala and Goyal (2000, [1]). In this note we show...

We provide existence results in a game with local spillovers where the payoff function satisfies both convexity and the strategic substitutes property. We show that there always exists a stable pairwise network in this game, and provide a condition which ensures the existence of pairwise...

We consider a multimarket framework where a set of firms compete on two interrelated oligopolistic markets. Prior to competing in these markets, firms can spy on others in order to increase the quality of their product. We characterize the equilibrium espionage networks and networks that...

In this note we introduce different levels of decay in the Goyal, Galeotti and Kamphorst (GGK) insider-outsider model of network formation. First, we deal with situations where the amount of decay is sufficiently low to avoid superfluous connections in strict Nash networks and we examine the...

In this paper we examine the role played by heterogeneity in the popular “connections model” of Jackson and Wolinsky (1996). We prove that under heterogeneity in values or decay involving only two degrees of freedom, all networks can supported as Nash. Moreover, we show that Nash networks...