The pattern of financial linkages is important in many areas of banking and finance. Yet bilateral linkages are often … unknown, and maximum entropy serves as the leading method for estimating unobserved counterparty exposures. This paper … entropy and also permits more robust analysis. Using the two benchmarks side by side helps identify a range of possible …

of an empirical network from economically meaningful benchmarks or reconstruct the most likely structure of an economic … network when the latter is unknown. However, several studies have proved that real economic networks are topologically very … different from networks inferred only from node strengths. Here we provide a detailed analysis for the World Trade Web (WTW) by …

Network topology plays a key role in many phenomena, from the spreading of diseases to that of financial crises …. Whenever the whole structure of a network is unknown, one must resort to reconstruction methods that identify the least biased … computationally hard and bias-prone procedure. Here we solve this problem by introducing an analytical and unbiased maximum-entropy …

We introduce a simple two-stage game of endogenous network formation and information sharing for reasoning about the … then we study how the network design and the utility specifications affect welfare. Surprisingly, we find that in general … "babblers" or "friends", irrespective of whether the network is unilateral or bilateral, in equilibrium, targeted information …

This paper studies a noncooperative model of network formation. Built upon the two-way flow model of Bala and Goyal … components of different sizes, a feature that resembles that of real-world networks. Discussions on this insight are provided. …