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Aditi Roy and Sudipta Sarangi
''Revisiting Friendship Networks''
( 2009, Vol. 29 No.4 )
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.
Keywords: Social networks, Endogenous effort, Magnetic agent
JEL: D8 - Information, Knowledge, and Uncertainty: General
C7 - Game Theory and Bargaining Theory:General
Manuscript Received : Jul 07 2009 Manuscript Accepted : Oct 20 2009

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