PhD Lunch Seminars Amsterdam

Speaker(s)
Daan in 't Veld (University of Amsterdam)
Date
Tuesday, 3 September 2013
Location
Amsterdam

Recent evidence suggests that financial networks exhibit a core-periphery network structure. This paper aims at giving an explanation for the existence of such a structure by using the tools of network formation theory. Focusing on intermediation benefits, we find that a core-periphery network cannot be unilaterally stable when agents are homogenous. A core-periphery network structure can be explained if we allow for heterogeneity among agents.