We study cost-sharing rules in network problems where agents seek to ship quantities of some good to their respective locations, and the cost on each arc is linear in the flow crossing it. In this context, Core Selection requires that each subgroup of agents pay a joint cost share that is not...

We propose an allocation rule that takes into account the importance of players and their links and characterizes it for a fixed network. Unlike previous rules, our characterization does not require component additivity. Next, we extend it to flexible networks a la Jackson (2005). Finally, we...

We study three remarkable cost sharing rules in the context of shortest path problems, where agents have demands that can only be supplied by a source in a network. The demander rule requires each demander to pay the cost of their cheapest connection to the source. The supplier rule charges to...

This paper proposes a central idea in diffusion research is that influential –a minority of individuals who influence an exceptional number of their peers- are important to formation of public opinion. Here we examine this idea, which we call the “influential hypothesis”, using the...

The focus of this study is on black markets which provide an important segment of the parallel economy. These markets operate in disequilibrium,search and information costs become very important.Trafficking in drugs taken as case, to explore both theoretically and empirically. The problem,...

This paper considers a model of observational learning in social networks. Every period, the agents observe the actions of their neighbors and their realized outcomes, and they imitate the most successful. First, we study the case where the network has finite population and we show that,...

We consider a model of observational learning in social networks. At every period, all agents choose from the same set of actions with uncertain payoffs and observe the actions chosen by their neighbors, as well as the payoffs they received. They update their choice myopically, by imitating the...

This work shows that defective behaviors from the cooperative equilibrium in the management of common resources can be fueled and triggered by the presence of agents with myopic behaviors; a similar phenomenon is also possible with cooperative motivations. This paper demonstrates and discusses...

In this paper we devise a slightly modified version of the Vote with the Wallet Game used by Becchetti et al.(2015, 2017) to the use of Social Media, where the player decides whether to responsibly share social knowledge or not. We follow the point of view of Bennet and Bennet (2010) according...