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.
PhD Lunch Seminars Amsterdam
- Speaker(s)
- Daan in 't Veld (University of Amsterdam)
- Date
- Tuesday, 3 September 2013
- Location
- Amsterdam