Revisiting Friendship Networks
We extend the model of friendship networks developed by Brueckner (2006) in two ways. First, we extend the level of indirect benefits by incorporating benefits from up to three links and explore its implication for the socially optimal and individual effort levels. Next, we generalize the magnetic agent problem by allowing for more than 3 players by restricting ourselves to regular networks that include payoffs from the magnetic agent.
Volume (Year): 29 (2009)
Issue (Month): 4 ()
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- Matthew O. Jackson & Asher Wolinsky, 1995.
"A Strategic Model of Social and Economic Networks,"
1098R, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
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Indian Statistical Institute, Planning Unit, New Delhi Discussion Papers
08-15, Indian Statistical Institute, New Delhi, India.
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Econometric Society 2004 North American Winter Meetings
184, Econometric Society.
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