Agents involved in the formation of a social or economic network typically face uncertainty about the benefits of creating a link. However, the interplay of such uncertainty and risk attitudes has been neglected in the network formation literature. We propose a dynamic network formation model...

This paper explores, theoretically and experimentally, a fixed-price mechanism by which, if aggregate demand exceeds supply, bidders are proportionally rationed. If demand is uncertain, equilibrium consists in overstating true demand to alleviate the effects of being rationed. Overstating is...