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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Econometric Society 2004 North American Winter Meetings
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1098R, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
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