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In this paper, we propose a game in which each player decides with whom to establish a costly connection and how much local public good is provided when benefits are shared among neighbors. We show that, when agents are homogeneous, Nash equilibrium networks are nested split graphs....
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present. I do so by extending the two-way flow network with small decay of De Jaegher and Kamphorst (J ECON BEHAV ORGAN, 2015 …
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We develop a network model whose links are governed by banks' optmizing decisions and by an endogenous tâtonnement … evolution of the network configuration under various prudential policy regimes, to measure banks' contribution to systemic risk …
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