The labor-managed Mondragon cooperatives in the Basque country, and La Lega coops concentrated in North Central Italy, are grouped into leagues that enable them to reap economies of scale in key services such as R&D, marketing and finance. These leagues are relatively rare and there are fewer...

The recent proliferation of free trade agreements (FTAs) has resulted in an increasingly complex network of preferential trading relationships. The economics literature has generally examined the formation of FTAs as a function of the participating countries' economic characteristics alone. In...

We study the formation of multilayer networks where payoffs are determined by the degrees in each network and explore distinct network relationships by allowing for inter-network and intra-network spillovers through five properties: supermodularity and submodularity for internetwork spillovers,...

We examine how trade sanctions can be imposed effectively in a trading network. We focus on three factors that affect trade sanctions: a country’s endowment, distance between trading countries, and connectivity in the network. Our models explain several empirical observations: (i) sanctions...

Economic agents are typically connected in multiple interrelated networks (multiplex). We examine how an initial “seed” network prompts link formation on the multiplex and shapes its equilibrium topology. In a duplex, positive (negative) externalities emanating from strategic complementarity...