We develop a dynamic network formation model that can explain the observed nestedness in real-world networks. Links are formed on the basis of agents' centrality and have an exponentially distributed life time. We use stochastic stability to identify the networks to which the network formation...

We develop an agent-based model to reproduce the process of link formation and to understand the effect of knowledge exchange in collaborative inter-firm networks of Research and Development (R&D) alliances. In our model, agents form links based on their previous alliance history and then...