Revisiting Friendship Networks

Sudipta Sarangi and Aditi Roy

Departmental Working Papers from Department of Economics, Louisiana State University

Abstract: 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.

Date: 2009-12
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Persistent link: https://EconPapers.repec.org/RePEc:lsu:lsuwpp:2009-12

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