Revisiting Friendship Networks
AbstractWe extend the model of friendship networks developed by Brueck- ner (2006) in two ways. First, we extend the level of indirect benefits by incorporating benefits from up to three links and explore its impli- cation for the socially optimal and individual e¤ort levels. Next, we generalize the magnetic agent problem by allowing for more than 3 players by restricting ourselves to regular networks that include pay- o¤s from the magnetic agent.
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Bibliographic InfoPaper provided by Department of Economics, Louisiana State University in its series Departmental Working Papers with number 2009-12.
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- D8 - Microeconomics - - Information, Knowledge, and Uncertainty
- C7 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory
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