Revisiting Friendship Networks
We 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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- Jan K. Brueckner, 2006.
Journal of Regional Science,
Wiley Blackwell, vol. 46(5), pages 847-865.
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- Haller, Hans & Sarangi, Sudipta, 2005. "Nash networks with heterogeneous links," Mathematical Social Sciences, Elsevier, vol. 50(2), pages 181-201, September. Full references (including those not matched with items on IDEAS)
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