Currarini, Sergio; Feri, Francesco - 2008
of an
exogenous linking cost. Somewhat surprisingly, a small cost lead to qualitative differences
in the incentives to … istheaggregateproducedlevelinthemarket, andwherea≡a1+a2+...+an.
Each variableai is private information of firmi.
The vector of random variables (a1,a2,...,an … linked with a node of
degreem, then it has an incentive to link with all other nodes of degreemin the network.
The next …