Peer E ects in Endogenous Networks (Preliminary)
نویسنده
چکیده
This paper presents a simple model of strategic network formation with local complementarities in e ort levels and positive local externalities. Equilibrium networks display other than the complete and the empty network core-periphery structures, which are commonly observed in empirical studies. Ex-ante homogenous agents may obtain di erent ex-post outcomes. These ndings are relevant for a wide range of social and economic phenomena, such as educational attainment, criminal activity, labor market participation and R&D expenditures of rms.
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