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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- Francis Bloch & Bhaskar Dutta, 2008.
"Communication networks with endogeneous link strength,"
Indian Statistical Institute, Planning Unit, New Delhi Discussion Papers
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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.
- Jan K. Brueckner, 2006.
Journal of Regional Science,
Wiley Blackwell, vol. 46(5), pages 847-865.
- Jan K. Brueckner, 2004. "Friendship Networks," Econometric Society 2004 North American Winter Meetings 184, Econometric Society.
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