The heterogeneous connections model is a generalization of the homogeneous connections model of Jackson and Wolinsky (1996) in which the intrinsic value of each connection is set by a discrete, positive and symmetric function that depends solely on the types of the two end agents. Core periphery...

We propose the LASSO VAR model with the time-zone effect to investigate how stock markets worldwide interact with each other. Our approach overcomes the dimensional problem in the VAR model and characterises connections within financial markets systematically. Using the daily data of 36 national...

We introduce a general model for the balance-sheet consistent valuation of interbank claims within an interconnected financial system. Our model represents an extension of clearing models of interdependent liabilities to account for the presence of uncertainty on banks' external assets. At the...

Whereas in some industries retailers distribute the products of all suppliers, in other industries they differentiate themselves from their rivals by becoming the exclusive distributors of some products, which results in incomplete distribution networks. To study this phenomenon, I analyze a...

The urban space paper is introduced by a brief “report” on the founding of Rome by Romulus; he traced a furrow and thereby defined the urban space. The core of the paper, however, defines the urban space by the dimension of collective decision making expressed in the form of voting games. It...

We examine the relationship between stock market liquidity and the network centrality of firm executives. We find that firms whose executive officers are more central in the network of executives have narrower spreads and reduced stock liquidity costs. We use an exogenous network centrality...

This paper studies how systemic risk can appear when rational agents establish derivative contracts in a fixed network. Agents are endowed with risks. They optimize their situation by designing and trading derivative contracts. Those deals spread the risks throughout the network and harmonize...

In a wide variety of social settings (e.g. crime, education, political activism, technology adoption), players' returns to their efforts depend on how much effort others exert. Modeling these situations as a network game with strategic complementarities, we show that a player's cycle centrality...

This paper studies the impact of collaboration on research output. First, we build a micro founded model for scientific knowledge production, where collaboration between researchers is represented by a bipartite network. The equilibrium of the game incorporates both the complementarity effect...

Popularity bias -- the tendency to make choices that are more popular -- is a widespread behavior. We incorporate this bias into a dynamic model of a bipartite economy with heterogeneous agents, where each agent primarily cares about obtaining her optimal number of partners. We provide a full...