This paper introduces a model of endogenous network formation and systemic risk. In it, agents form networks that … generate higher interconnectedness, which in turn leads to higher systemic risk. Third, the structure of the network formed … shocks are perfectly correlated, the network formed is a complete graph, i.e., a link between every pair of agents. This …

We model contagions and cascades of failures among organizations linked through a network of financial … interdependencies. We identify how the network propagates discontinuous changes in asset values triggered by failures (e … diversification connect the network which permits cascades to propagate further, but eventually, more diversification makes contagion …

that the completely connected network is stable, although, its exact structure, and thus contagion implications, is …

We consider a class of cooperative network games with transferable utilities in which players interact through a … probabilistic network rather than a regular, deterministic network. In this class of wealth-generating situations we consider … probabilistic extensions of the Myerson value and the position value. For the subclass of probabilistic network games in multilinear …

knowledge production, where collaboration between researchers is represented by a bipartite network. The equilibrium of the game … analyzing the co-authorship network of economists registered in the RePEc Author Service …

Consider a population of n players playing a variant of Myerson's network formation model. Each player simultaneously … call the outcome of the network formation model a k-uniform Myerson graph and study the distribution of matchings on such …

agents are myopic best responders. We develop a new network measure, the contagion threshold, that determines when a p … show that a p-dominant action spreads to the whole network whenever the contagion threshold of that network is greater or … the long run. This result implies that targeted contagion, a network-wide diffusion of actions initiated by targeting …

We develop a model of social preferences for network games and study its predictions in a local public goods game with … a property of the network structure: neighborhood nestedness. This means that equilibrium selection succeeds in small …

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 …

networks to a core-periphery insider network. A small group of agents endogenously arise as intermediaries for the bulk of …