In this paper, we study a standard Cournot model where rms are able to form bilateral collaboration agreements which lower marginal cost. While a static analysis of such a model can be found in Goyal and Joshi [5], we introduce an evolutionary model. Stable networks (in the static sense) exhibit...

In this paper we show how externalities between links affect the existence and uniqueness of pairwise stable (PS) networks. For this we introduce the properties ordinal convexity (concavity) and ordinal strategic complements (substitutes) of utility functions on networks. It is shown that there...

We study investments in R&D and the formation of R&D clusters of firms which are competitors in the market. In a three stage game, firms first decide on the budget allocated to their R&D department, then form research clusters and finally compete in quantities. The second stage cluster formation...

Increasing concerns about climate change have given rise to the formation of International Environmental Agreements (IEAs) as a possible solution to limit global pollution effects. In this paper, we study the stability of IEAs in a repeated game framework where we restrict to strategies which...

We study a dynamic model of opinion formation in social networks. In our model, boundedly rational agents update opinions by averaging over their neighbors' expressed opinions, but may misrepresent their own opinion by conforming or counter-conforming with their neighbors. We show that an...

We set out a behavioural model of the stock market in which investors are connected through a social network. Agents may adopt types on the spectrum from pure fundamentalist to arbitrarily strong chartist which they update from their neighbours depending on past performance. Our main analytical...