We analyze a model of strategic network formation prior to a Manea (2011) bargaining game: ex-ante homogeneous players … form an undirected network with explicit linking costs anticipating expected equilibrium payoffs from the subsequent … sequential network bargaining. Assuming patient players, we provide a complete characterization of networks being pairwise (Nash …

Novating a single asset class to a central counterparty (CCP) in an over-the-counter derivatives trading network … extend the work of Duffie and Zhu (2011) by considering general classes of network structures and focus on scale-free and … is unlikely to be beneficial when the link structure of the network relies on just a few key nodes. In particular, in …

A large literature has studied how peers affect behavior by exploiting the preexisting social network structure only … unique panel dataset that contains detailed information on the network of informal financial transactions before and after a … structure of the network of informal financial transactions among households. Second, we estimate a panel model of peer effects …

We propose a random network model incorporating heterogeneity of agents and a continuous notion of homophily. Unlike … new employee via the social network. …

to network formation in order to develop such a model. Agents spend costly resources to socialize. Their effort levels …

This paper analyses a simultaneous game of network formation and information acquisition where the benefit structure is … such that the benefit that an agent derives from the network she is located in depends on the maximum information that … someone in her neighbourhood, including herself, acquires. It turns out that in equilibrium star network emerges as the unique …

Two project leaders (or entrepreneurs) in a network, which captures social relations, recruit players in a strategic … selects one equilibrium at a time. An agent's expected payoff is related to his position in the network, though no centrality …

The Lightning Network is a decentralized payment network built on top of a block-chain, in which intermediary nodes … provide a trust-less routing service for end users. We provide an overview of the current state of the network and show that … strategically on the network. Those strategic interactions between nodes can be described by a Bertrand competition model with …

High levels of clustering—the tendency for two nodes in a network to share a neighbor—are ubiquitous in economic and … otherwise separate network regions, representing rewards for filling “structural holes” in the sense of Burt (1992) and keeping … distances in networks short. This paper proposes a parsimonious model of network formation with introductions and intermediation …

This paper explores the manner in which the structure of a social network constrains the level of inequality that can … be sustained among its members. We assume that any distribution of value across the network must be stable with respect … network. We show that if the network is bipartite, there is a unique stable payoff distribution that is maximally unequal in …