Showing 11 - 20 of 34,724
In rural economies, risk-sharing arrangements through networks of relatives and friends are common. Monitoring issues seem to impede the development of informal insurance mechanisms at higher level. As such, after a large and covariate shock, the prerequisites under which informal arrangements...
Persistent link: https://www.econbiz.de/10008469834
Based on empirical facts, we build a model of informal insurance institutions and study their stability. In our setting, risk sharing groups are overlapping homogenous coalitions, originating from networks of historical trust relationships. We derive a general folk theorem that works in an...
Persistent link: https://www.econbiz.de/10011084766
What motivates people in rural villages to share? We first elicit a baseline level of sharing using a standard, anonymous dictator game. Then using variants of the dictator game that allow for either revealing the dictator's identity or allowing the dictator to choose the recipient, we attribute...
Persistent link: https://www.econbiz.de/10010599688
are not bounded away from zero and the network is sufficiently connected and has identifiable information paths. If search … as in the complete network. The density of indirect connections affects convergence rates. Network transparency has short …
Persistent link: https://www.econbiz.de/10012852060
In this paper, we connect the social network theory on centrality measures to the economic theory of preferences and … different networks. The famous degree measure assigns to every position in a weighted network the sum of the weights of all … links with its neighbours. A crucial property of a preference relation over network positions is neutrality to ordinary risk …
Persistent link: https://www.econbiz.de/10011688772
We investigate the impact of network structures describing reciprocal influence-relationships between agents on their … uncertainty. The model could explain specific network dynamics observed in markets with asymmetric or not perfect information on …
Persistent link: https://www.econbiz.de/10010886260
We consider an incomplete information network game in which agents’ information is restricted only to the identity of … walks they have in the network. Our model clearly demonstrates how asymmetric information based on network position and the … identity of agents affect strategic behavior in such network games. We also characterize agent behavior in equilibria under …
Persistent link: https://www.econbiz.de/10014344709
Conventional wisdom in economics holds that traditional credit and insurance networks are inapt for insuring against covariate risks such as natural hazards. We challenge this claim by examining changes in financial allocations in Rotating Savings and Credit Associations (Roscas), a popular...
Persistent link: https://www.econbiz.de/10011932104
Persistent link: https://www.econbiz.de/10013185282
Persistent link: https://www.econbiz.de/10012113943