Since the seminal contribution of Jackson & Wolinsky 1996 [A Strategic Model of Social and Economic Networks, JET 71 …, 44-74] it has been widely acknowledged that the formation of social networks exhibits a general conflict between … results that relate situations of positive externalities with stable networks that cannot be 'too dense' in a well …

This paper studies the properties of convexity (concavity) and strategic complements (substitutes) in network formation … and the implications for the structure of pairwise stable networks. First, different definitions of convexity (concavity … shown that there always exists a pairwise stable network as long as the utility function of each player satisfies convexity …

network formation. While the physics/applied mathematics approach is capable of reproducing most observed networks, it does …We survey the literature on social networks by putting together the economics, sociological and physics … not explain why they emerge. On the contrary, the economics approach is very precise in explaining why networks emerge but …

network formation. While the physics/applied mathematics approach is capable of reproducing most observed networks, it does …We survey the literature on social networks by putting together the economics, sociological and physics … not explain why they emerge. On the contrary, the economics approach is very precise in explaining why networks emerge but …

network. Interestingly, unconnected equilibria are asymmetric and central players may emerge. Second, I show that non …

We study a model of network formation and start-up financing with endogenous entrepreneurial type distribution. A hub … firm admits members to its network based on signals about entrepreneurs' types. Network membership is observable, which … allows lenders to offer different interest rates to network and stand-alone entrepreneurs. We show that a network outcome can …

We introduce a network formation model based on the idea that individuals engage in production (or decide to … stable and socially efficient network configurations. We show that every society can admit a stable network. Moreover …, typically there will be multiple stable configurations that will be available for a society. While all stable networks will not …

This paper reports results from a laboratory experiment on network formation among heterogeneous agents. The … experimental design extends the Bala-Goyal (2000) model of network formation with decay and two-way flow of benefits by allowing … private information. In all treatments, the (efficient) equilibrium network has a "star" structure. With homogeneous agents …

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, with …

Since the seminal contribution of Jackson & Wolinsky 1996 [A Strategic Model of Social and Economic Networks, JET 71 …, 44-74] it has been widely acknowledged that the formation of social networks exhibits a general conflict between … general results that relate situations of positive externalities with stable networks that cannot be too dense in a well …