Interbank claims are a concern to regulators as they might facilitate the dissemination of defaults and generate spill-over effects. Building on a simple model, this paper introduces a measure of the spill-over effects that a bank generates when it defaults. The measure is based on an explicit...

The goal of the present paper is to analyze the optimal targeting strategies of a planner (say a monopolist) who aims to increase the aggregate action of agents (consumers' purchase). Agents are embedded in a social network and their actions influence each other. Actions are complements,...

Interbank claims are a concern to regulators as they might facilitate the dissemination of defaults and generate spill-over effects. Building on a simple model, this paper introduces a measure of the spill-over effects that a bank generates when it defaults. The measure is based on an explicit...