A crucial ingredient in social interaction models is the structure of peer groups with which individuals interact. We argue that this structure can vary from one individual to another and thus should be modeled as randomly distributed across individuals. We propose and study a dynamic binary...

The clearing of over-the-counter transactions through central counterparties (CCPs), one of the pillars of financial reform following the crisis of 2007-2008, has promoted CCPs as key elements of the new global financial architecture. Given the cost of implementing central clearing mandates and...