This paper studies what can be learned from pairwise stable networks. I specify the marginal utility of a pair forming a link as a function of individual-level unobserved heterogeneity as well as pair level observed characteristics. I derive a tetrad-level utility inequality from pairwise...

This paper investigates if professional players follow the Minimax theorem in their strategies, using Major League Baseball playoff season data. Our empirical results show that baseball players do not optimize their strategies in the sense that their sequence of chosen strategies is predictable...

Using data from one of Australia's largest thoroughbred auction houses, we investigate the price determinants of thoroughbred yearlings sold at auction. We include novel key variables to construct various hedonic pricing models, and test whether the models forecast sufficiently well...

This paper studies how the strength of social ties are affected by the geographical location of other individuals and their social capital. We characterize the equilibrium in terms of both social interactions and social capital. We show that lower travel costs increase not only the interaction...