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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- Jan K. Brueckner, 2006.
Journal of Regional Science,
Wiley Blackwell, vol. 46(5), pages 847-865.
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- Matthew O. Jackson & Asher Wolinsky, 1995. "A Strategic Model of Social and Economic Networks," Discussion Papers 1098R, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
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- Francis Bloch & Bhaskar Dutta, 2008.
"Communication networks with endogeneous link strength,"
Indian Statistical Institute, Planning Unit, New Delhi Discussion Papers
08-15, Indian Statistical Institute, New Delhi, India.
- Bloch, Francis & Dutta, Bhaskar, 2009. "Communication networks with endogenous link strength," Games and Economic Behavior, Elsevier, vol. 66(1), pages 39-56, May.
- Bloch, Francis & Dutta, Bhaskar, 2005. "Communication Networks with Endogenous Link Strength," The Warwick Economics Research Paper Series (TWERPS) 723, University of Warwick, Department of Economics.
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