The paper models the evolution of regional asymmetries, and the associated intra-distribution mobility, as the outcome of adoption decisions taken by firms at different locations. The following equilibria are characterised: Persistent asymmetry where nobody adopts, Leapfrogging where low-quality...

In this paper we argue that authorities aid cooperation by means ofdirect coordination or the enforcement of re-commitment devices suchas contract laws.Credible threats of violence allow this role. In alocal interaction model, an authority forms if mutually connected individuals with sufficient...

In this paper we argue that authorities aid cooperation by means ofdirect coordination or the enforcement of re-commitment devices suchas contract laws.Credible threats of violence allow this role. In alocal interaction model, an authority forms if mutually connected individuals with sufficient...

We consider a population of agents, either finite or countably infinite, located on an arbitrary network. Agents interact directly only with their immediate neighbors, but are able to observe the behavior of (some) other agents beyond their interaction neighborhood, and learn from that behavior...

We consider a population of agents, either finite or countably infinite, located on an arbitrary network. Agents interact directly only with their immediate neighbors, but are able to observe the behavior of (some) other agents beyond their interaction neighborhood, and learn from that behavior...

The paper airns to amend the standard monopolistic competition framework - and its endogenous growth extension - introducing both heterogeneity among producers and a form of 'Schumpeterian' competitive selection process. According to our view, the introduction of heterogeneity implies that the...

We develop an explanation of the emergence of local norms, and theassociated phenomenon of geographical variation in behavior.Individuals are assumed to interact locally with neighbors in anenvironment with a network externality. Although many patterns ofbehavior are possible, the dispersed...

Abstract In this paper we provide a simple locally interactive dynamic model of technology choice and output production. We assume a Cobb-Douglas type production function for two available technologies. The returns to technology 0 are not affected by local spillovers. Technology 1 is more...

The main results of the traditional theory of private provision of public goods in the case of identical individuals are: 1) there exists a unique Nash equilibrium pattern of contributions in which everybody contributes the same amount (Bergstrom et al. [1986]); 2) this pattern is locally stable...