This paper reports the results of a laboratory experiment on network formation among heterogeneous agents. The … experimental design extends the basic Bala-Goyal (2000) model of network formation with decay and two-way flow of benefits by … network has a "star" structure. We find that with homogeneous agents, equilibrium predictions fail completely. In contrast …

When workers send applications to vacancies they create a network. Frictions arise because workers typically do not … friction affects network formation, while the second coordination friction affects network clearing. We show that those … that can arise and the number of matches on a given network. Equilibria that exhibit wage dispersion are inefficient in …

results with those obtained in sociology. -- Random graph ; game theory ; centrality measures ; network formation ; weak and … network formation. While the physics/applied mathematics approach is capable of reproducing most observed networks, it does …

the members of a network who are linked with each other by direct social connections. To model the comparisons, we compose … ratio: the network's aggregate level of relative deprivation divided by the aggregate level of the relative deprivation of a … hypothetical network in which one member of the network receives all the income, and it is with this member that the other members …

taxes reduces wages. This implies a budget deficit. Hence, taxes will have to be raised if revenues are held constant. If … budget constraint. …

and wages move in the same direction under neo-classical assumptions, agglomeration economies in production, congestion in … congestion in production or the agglomeration in consumption models. The micro-economics of such consumption … thus suggest that consumption-oriented agglomeration and congestion should receive more attention in the future …

necessary. -- Commuting cost ; congestion tax ; labour supply …

/resident happiness and/or reducing productivity of employers. -- Agglomeration ; urbanization economies ; congestion ; regional …