Revisiting Friendship Networks

We extend the model of friendship networks developed by Brueckner (2006) in two ways. First, we extend the level of indirect benefits by incorporating benefits from up to three links and explore its implication for the socially optimal and individual effort levels. Next, we generalize the magnetic agent problem by allowing for more than 3 players by restricting ourselves to regular networks that include payoffs from the magnetic agent.

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Year of publication:	2009
Authors:	Roy, Aditi ; Sarangi, Sudipta
Published in:	Economics Bulletin. - AccessEcon, ISSN 1545-2921. - Vol. 29.2009, 4, p. 2640-2647
Publisher:	AccessEcon
Subject:	Social networks \| Endogenous effort \| Magnetic agent

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Extent:	application/pdf
Type of publication:	Article
Language:	English
Classification:	D8 - Information and Uncertainty ; C7 - Game Theory and Bargaining Theory
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10008563162