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This paper studies optimal targeting policies, consisting of eliminating (preserving) a set of agents in a network and aimed at minimizing (maximizing) aggregate effort levels. Different from the existing literature, we allow the equilibrium network to adapt after a network intervention and...
Persistent link: https://www.econbiz.de/10012308179
I propose a simple model of signed network formation, where agents make friends to extract payoffs from weaker enemies. The model thereby accounts for the interplay between friendship and alliance on one hand and enmity and antagonism on the other. Nash equilibrium configurations are such that...
Persistent link: https://www.econbiz.de/10011744052
This paper presents a model of strategic network formation with local complementarities in effort levels and positive local externalities. Results are obtained for a general class of payoff functions, which subsumes the linear-quadratic specification frequently used in the literature. We assume...
Persistent link: https://www.econbiz.de/10013032966
This paper presents a model of endogenous network formation in the presence of peer effects for a general class of payoff functions with local complementarities in effort levels and positive local externalities. Links are one-sided and agents move simultaneously. I find that equilibrium networks...
Persistent link: https://www.econbiz.de/10013145388
I propose a game of signed network formation, where agents make friends to coerce payoffs from enemies with fewer friends. The model accounts for the interplay between friendship and enmity. Nash equilibrium configurations are such that, either everyone is friends with everyone, or agents can be...
Persistent link: https://www.econbiz.de/10013071392
This paper presents a simple model of strategic network formation with local complementarities in effort levels and positive local externalities for a general class of payoff functions. Results are obtained for one-sided and two-sided link creation. In both cases (pairwise) Nash equilibrium...
Persistent link: https://www.econbiz.de/10013075497