{"status":"ok","message-type":"work","message-version":"1.0.0","message":{"indexed":{"date-parts":[[2026,7,10]],"date-time":"2026-07-10T13:13:11Z","timestamp":1783689191446,"version":"3.55.0"},"reference-count":68,"publisher":"Wiley","license":[{"start":{"date-parts":[[2026,7,10]],"date-time":"2026-07-10T00:00:00Z","timestamp":1783641600000},"content-version":"vor","delay-in-days":0,"URL":"http:\/\/onlinelibrary.wiley.com\/termsAndConditions#vor"},{"start":{"date-parts":[[2026,7,10]],"date-time":"2026-07-10T00:00:00Z","timestamp":1783641600000},"content-version":"tdm","delay-in-days":0,"URL":"http:\/\/doi.wiley.com\/10.1002\/tdm_license_1.1"}],"content-domain":{"domain":["onlinelibrary.wiley.com"],"crossmark-restriction":true},"short-container-title":["J of Applied Econometrics"],"abstract":"<jats:title>ABSTRACT<\/jats:title>\n                  <jats:p>This paper explores the existence of network externalities in link formation games of incomplete information. It extends the structural estimation method in Leung (2015) to games where links are undirected and proposals are only partially observed. We provide an econometric characterization of the proposed two\u2010step estimator and document its performance through a simulation exercise. When the estimation method is applied to data on risk\u2010sharing arrangements in a Tanzanian village, results indicate that indirect connections matter.<\/jats:p>","DOI":"10.1002\/jae.70079","type":"journal-article","created":{"date-parts":[[2026,7,10]],"date-time":"2026-07-10T12:18:06Z","timestamp":1783685886000},"update-policy":"https:\/\/doi.org\/10.1002\/crossmark_policy","source":"Crossref","is-referenced-by-count":0,"title":["Estimating Network Externalities in Undirected Link Formation Games"],"prefix":"10.1002","author":[{"given":"Margherita","family":"Comola","sequence":"first","affiliation":[{"name":"University Paris\u2010Saclay (RITM) and Paris School of Economics  Paris France"}],"role":[{"vocabulary":"crossref","role":"author"}]},{"given":"Amit","family":"Dekel","sequence":"additional","affiliation":[{"name":"Aix\u2010Marseille School of Economics  Marseille France"}],"role":[{"vocabulary":"crossref","role":"author"}]}],"member":"311","published-online":{"date-parts":[[2026,7,10]]},"reference":[{"issue":"4","key":"e_1_2_10_2_1","doi-asserted-by":"crossref","first-page":"1016","DOI":"10.1111\/joes.12256","article-title":"Credibly Identifying Social Effects: Accounting for Network Formation and Measurement Error","volume":"32","author":"Advani A.","year":"2018","journal-title":"Journal of Economic Surveys"},{"issue":"1","key":"e_1_2_10_3_1","doi-asserted-by":"crossref","first-page":"1","DOI":"10.1111\/j.1468-0262.2007.00731.x","article-title":"Sequential Estimation of Dynamic Discrete Games","volume":"75","author":"Aguirregabiria V.","year":"2007","journal-title":"Econometrica"},{"issue":"4","key":"e_1_2_10_4_1","doi-asserted-by":"crossref","first-page":"1624","DOI":"10.1093\/restud\/rdaa073","article-title":"Investments in Social Ties, Risk Sharing, and Inequality","volume":"88","author":"Ambrus A.","year":"2021","journal-title":"Review of Economic Studies"},{"issue":"1","key":"e_1_2_10_5_1","doi-asserted-by":"crossref","first-page":"149","DOI":"10.1257\/aer.104.1.149","article-title":"Consumption Risk\u2010Sharing in Social Networks","volume":"104","author":"Ambrus A.","year":"2014","journal-title":"American Economic Review"},{"issue":"3","key":"e_1_2_10_6_1","doi-asserted-by":"crossref","first-page":"1179","DOI":"10.3982\/ECTA12576","article-title":"Nash Equilibria on (Un)stable Networks","volume":"89","author":"Badev A.","year":"2021","journal-title":"Econometrica"},{"issue":"6","key":"e_1_2_10_7_1","doi-asserted-by":"crossref","first-page":"2224","DOI":"10.1086\/700073","article-title":"The Economic Effects of Social Networks: Evidence From the Housing Market","volume":"126","author":"Bailey M.","year":"2018","journal-title":"Journal of Political Economy"},{"key":"e_1_2_10_8_1","doi-asserted-by":"crossref","first-page":"1181","DOI":"10.1111\/1468-0262.00155","article-title":"A Noncooperative Model of Network Formation","volume":"68","author":"Bala V.","year":"2000","journal-title":"Econometrica"},{"issue":"6144","key":"e_1_2_10_9_1","doi-asserted-by":"crossref","DOI":"10.1126\/science.1236498","article-title":"The Diffusion of Microfinance","volume":"341","author":"Banerjee A.","year":"2013","journal-title":"Science"},{"key":"e_1_2_10_10_1","unstructured":"Bjorn P. A. andQ. H.Vuong.1984. \u201cSimultaneous Equations Models for Dummy Endogenous Variables: A Game Theoretic Formulation With an Application to Labor Force Participation.\u201d Technical Report WP California Institute of Technology."},{"issue":"1","key":"e_1_2_10_11_1","doi-asserted-by":"crossref","first-page":"36","DOI":"10.1016\/j.jet.2008.01.008","article-title":"Informal Insurance in Social Networks","volume":"143","author":"Bloch F.","year":"2008","journal-title":"Journal of Economic Theory"},{"key":"e_1_2_10_12_1","doi-asserted-by":"crossref","first-page":"170","DOI":"10.1038\/d41586-018-06215-5","article-title":"Don't Forget People in the Use of Big Data for Development","volume":"561","author":"Blumenstock J.","year":"2018","journal-title":"Nature"},{"issue":"3","key":"e_1_2_10_13_1","doi-asserted-by":"crossref","first-page":"S14","DOI":"10.1111\/ectj.12096","article-title":"My Friend Far, Far Away: A Random Field Approach to Exponential Random Graph Models","volume":"20","author":"Boucher V.","year":"2017","journal-title":"Econometrics Journal"},{"key":"e_1_2_10_14_1","doi-asserted-by":"crossref","first-page":"603","DOI":"10.1146\/annurev-economics-020320-033926","article-title":"Peer Effects in Networks: A Survey","volume":"12","author":"Bramoull\u00e9 Y.","year":"2020","journal-title":"Annual Review of Economics"},{"key":"e_1_2_10_15_1","doi-asserted-by":"crossref","DOI":"10.1016\/j.jet.2024.105920","article-title":"Diffusion and Targeting Centrality","volume":"222","author":"Bramoull\u00e9 Y.","year":"2024","journal-title":"Journal of Economic Theory"},{"issue":"3","key":"e_1_2_10_16_1","doi-asserted-by":"crossref","first-page":"275","DOI":"10.1016\/j.jebo.2006.10.004","article-title":"Risk\u2010Sharing Networks","volume":"64","author":"Bramoull\u00e9 Y.","year":"2007","journal-title":"Journal of Economic Behavior & Organization"},{"key":"e_1_2_10_17_1","doi-asserted-by":"crossref","unstructured":"Brandes U. andD.Fleischer.2005. \u201cCentrality Measures Based on Current Flow.\u201d InAnnual Symposium on Theoretical Aspects of Computer Science 533\u2013544. Springer.","DOI":"10.1007\/978-3-540-31856-9_44"},{"key":"e_1_2_10_18_1","doi-asserted-by":"crossref","first-page":"189","DOI":"10.2307\/20777575","article-title":"\u201cCross\u2010Firm\u201d Inventors and Social Networks: Localized Knowledge Spillovers Revisited","volume":"79","author":"Breschi S.","year":"2005","journal-title":"Annales d'\u00c9conomie et de Statistique"},{"issue":"1","key":"e_1_2_10_19_1","doi-asserted-by":"crossref","first-page":"57","DOI":"10.1016\/0304-4076(91)90032-9","article-title":"Empirical Models of Discrete Games","volume":"48","author":"Bresnahan T. F.","year":"1991","journal-title":"Journal of Econometrics"},{"key":"e_1_2_10_20_1","doi-asserted-by":"crossref","DOI":"10.1016\/j.jue.2020.103277","article-title":"Calling From the Outside: The Role of Networks in Residential Mobility","volume":"119","author":"B\u00fcchel K.","year":"2020","journal-title":"Journal of Urban Economics"},{"issue":"2","key":"e_1_2_10_21_1","doi-asserted-by":"crossref","first-page":"862","DOI":"10.1016\/j.jeconom.2022.07.007","article-title":"Identification and Inference of Network Formation Games With Misclassified Links","volume":"235","author":"Candelaria L. E.","year":"2023","journal-title":"Journal of Econometrics"},{"key":"e_1_2_10_22_1","first-page":"303","volume-title":"The Oxford Handbook of the Economics of Networks","author":"Chandrasekhar A.","year":"2016"},{"key":"e_1_2_10_23_1","doi-asserted-by":"crossref","first-page":"3741","DOI":"10.1093\/restud\/rdaf013","article-title":"A Network Formation Model Based on Subgraphs","volume":"92","author":"Chandrasekhar A. G.","year":"2025","journal-title":"Review of Economic Studies"},{"key":"e_1_2_10_24_1","unstructured":"Chandrasekhar A. G. andR.Lewis.2012. \u201cEconometrics of Sampled Networks.\u201d Unpublished manuscript; available online."},{"issue":"1","key":"e_1_2_10_25_1","doi-asserted-by":"crossref","first-page":"417","DOI":"10.1016\/j.jet.2006.09.006","article-title":"Group Play in Games and the Role of Consent in Network Formation","volume":"136","author":"Charness G.","year":"2007","journal-title":"Journal of Economic Theory"},{"issue":"1","key":"e_1_2_10_26_1","doi-asserted-by":"crossref","first-page":"1","DOI":"10.1016\/0304-3878(93)90102-S","article-title":"Reciprocity Without Commitment: Characterization and Performance of Informal Insurance Arrangements","volume":"40","author":"Coate S.","year":"1993","journal-title":"Journal of Development Economics"},{"issue":"579","key":"e_1_2_10_27_1","doi-asserted-by":"crossref","first-page":"954","DOI":"10.1111\/ecoj.12071","article-title":"Testing Unilateral and Bilateral Link Formation","volume":"124","author":"Comola M.","year":"2014","journal-title":"Economic Journal"},{"issue":"3","key":"e_1_2_10_28_1","doi-asserted-by":"crossref","first-page":"549","DOI":"10.1086\/690810","article-title":"The Missing Transfers: Estimating Misreporting in Dyadic Data","volume":"65","author":"Comola M.","year":"2017","journal-title":"Economic Development and Cultural Change"},{"issue":"3","key":"e_1_2_10_29_1","doi-asserted-by":"crossref","first-page":"597","DOI":"10.1162\/rest_a_00908","article-title":"Treatment Effect Accounting for Network Changes","volume":"103","author":"Comola M.","year":"2021","journal-title":"Review of Economics and Statistics"},{"key":"e_1_2_10_30_1","doi-asserted-by":"crossref","first-page":"268","DOI":"10.1017\/9781108227162.008","volume-title":"Advances in Economics and Econometrics: Theory and Applications, Eleventh World Congress","author":"De Paula A.","year":"2017"},{"key":"e_1_2_10_31_1","doi-asserted-by":"crossref","first-page":"263","DOI":"10.3982\/ECTA13564","article-title":"Identifying Preferences in Networks With Bounded Degree","volume":"86","author":"De Paula A.","year":"2018","journal-title":"Econometrica"},{"issue":"1","key":"e_1_2_10_32_1","doi-asserted-by":"crossref","first-page":"143","DOI":"10.3982\/ECTA9216","article-title":"Inference of Signs of Interactions Effects in Simultaneous Games With Incomplete Information","volume":"80","author":"De Paula A.","year":"2012","journal-title":"Econometrica"},{"issue":"2","key":"e_1_2_10_33_1","doi-asserted-by":"crossref","first-page":"337","DOI":"10.1016\/j.jdeveco.2005.06.009","article-title":"Risk\u2010Sharing Networks and Insurance Against Illness","volume":"81","author":"De Weerdt J.","year":"2006","journal-title":"Journal of Development Economics"},{"issue":"8","key":"e_1_2_10_34_1","doi-asserted-by":"crossref","first-page":"1152","DOI":"10.1080\/00220388.2010.527952","article-title":"Social Identity and the Formation of Health Insurance Networks","volume":"47","author":"De Weerdt J.","year":"2011","journal-title":"Journal of Development Studies"},{"issue":"5","key":"e_1_2_10_35_1","doi-asserted-by":"crossref","first-page":"936","DOI":"10.1162\/REST_a_00430","article-title":"Social Networks and Research Output","volume":"96","author":"Ductor L.","year":"2014","journal-title":"Review of Economics and Statistics"},{"key":"e_1_2_10_36_1","unstructured":"Fafchamps M. andF.Gubert.2005. \u201cThe Formation of Risk Sharing Networks.\u201d Social Research."},{"issue":"2","key":"e_1_2_10_37_1","doi-asserted-by":"crossref","first-page":"261","DOI":"10.1016\/S0304-3878(03)00029-4","article-title":"Risk\u2010Sharing Networks in Rural Philippines","volume":"71","author":"Fafchamps M.","year":"2003","journal-title":"Journal of Development Economics"},{"key":"e_1_2_10_38_1","doi-asserted-by":"crossref","unstructured":"Gaulier G. andS.Zignago.2010. \u201cBaci: International Trade Database at the Product\u2010Level.\u201d Technical Report Working Paper 2010\u201023 CEPII.","DOI":"10.2139\/ssrn.1994500"},{"issue":"1","key":"e_1_2_10_39_1","doi-asserted-by":"crossref","first-page":"87","DOI":"10.1111\/1467-937X.00238","article-title":"Group Formation in Risk\u2010Sharing Arrangements","volume":"70","author":"Genicot G.","year":"2003","journal-title":"Review of Economic Studies"},{"issue":"1","key":"e_1_2_10_40_1","first-page":"183","article-title":"The 1\/d Law of Giving","volume":"2","author":"Goeree J. K.","year":"2010","journal-title":"American Economic Journal: Microeconomics"},{"issue":"2","key":"e_1_2_10_41_1","doi-asserted-by":"crossref","first-page":"403","DOI":"10.1086\/500990","article-title":"Economics: An Emerging Small World","volume":"114","author":"Goyal S.","year":"2006","journal-title":"Journal of Political Economy"},{"issue":"1","key":"e_1_2_10_42_1","doi-asserted-by":"crossref","first-page":"465","DOI":"10.1146\/annurev-economics-080614-115611","article-title":"Methods of Identification in Social Networks","volume":"7","author":"Graham B. S.","year":"2015","journal-title":"Annual Review of Economics"},{"key":"e_1_2_10_43_1","first-page":"63","volume-title":"The Econometric Analysis of Network Data","author":"Graham B. S.","year":"2019"},{"issue":"1","key":"e_1_2_10_44_1","doi-asserted-by":"crossref","first-page":"130","DOI":"10.1257\/aer.100.1.130","article-title":"Matching and Sorting in Online Dating","volume":"100","author":"Hitsch G.","year":"2010","journal-title":"American Economic Review"},{"issue":"2","key":"e_1_2_10_45_1","doi-asserted-by":"crossref","first-page":"301","DOI":"10.1002\/jae.2426","article-title":"A Social Interactions Model With Endogenous Friendship Formation and Selectivity","volume":"31","author":"Hsieh C.\u2010S.","year":"2016","journal-title":"Journal of Applied Econometrics"},{"issue":"5","key":"e_1_2_10_46_1","doi-asserted-by":"crossref","first-page":"1857","DOI":"10.1257\/aer.102.5.1857","article-title":"Social Capital and Social Quilts: Network Patterns of Favor Exchange","volume":"102","author":"Jackson M. O.","year":"2012","journal-title":"American Economic Review"},{"issue":"1","key":"e_1_2_10_47_1","doi-asserted-by":"crossref","first-page":"44","DOI":"10.1006\/jeth.1996.0108","article-title":"A Strategic Model of Social and Economic Networks","volume":"71","author":"Jackson M. O.","year":"1996","journal-title":"Journal of Economic Theory"},{"issue":"3","key":"e_1_2_10_48_1","doi-asserted-by":"crossref","first-page":"476","DOI":"10.1162\/rest_a_00762","article-title":"R&d Networks: Theory, Empirics and Policy Implications","volume":"101","author":"K\u00f6nig M.","year":"2019","journal-title":"Review of Economics and Statistics"},{"issue":"3","key":"e_1_2_10_49_1","doi-asserted-by":"crossref","first-page":"813","DOI":"10.3982\/TE1524","article-title":"The Formation of Networks With Local Spillovers and Limited Observability","volume":"11","author":"K\u00f6nig M. D.","year":"2016","journal-title":"Theoretical Economics"},{"issue":"537","key":"e_1_2_10_50_1","doi-asserted-by":"crossref","first-page":"917","DOI":"10.1111\/j.1468-0297.2009.02250.x","article-title":"Links and Architecture in Village Networks","volume":"119","author":"Krishnan P.","year":"2009","journal-title":"Economic Journal"},{"issue":"1","key":"e_1_2_10_51_1","first-page":"1","article-title":"The Old Boy Network: Are the Professional Networks of Female Executives Less Effective Than Men's for Advancing Their Careers?","volume":"18","author":"Lalanne M.","year":"2022","journal-title":"Journal of Institutional Economics"},{"issue":"1","key":"e_1_2_10_52_1","doi-asserted-by":"crossref","first-page":"182","DOI":"10.1016\/j.jeconom.2015.04.001","article-title":"Two\u2010Step Estimation of Network\u2010Formation Models With Incomplete Information","volume":"188","author":"Leung M. P.","year":"2015","journal-title":"Journal of Econometrics"},{"key":"e_1_2_10_53_1","volume-title":"Nonparametric Econometrics: Theory and Practice","author":"Li Q.","year":"2007"},{"issue":"3","key":"e_1_2_10_54_1","doi-asserted-by":"crossref","first-page":"825","DOI":"10.3982\/ECTA10400","article-title":"A Structural Model of Dense Network Formation","volume":"85","author":"Mele A.","year":"2017","journal-title":"Econometrica"},{"issue":"2","key":"e_1_2_10_55_1","doi-asserted-by":"crossref","first-page":"224","DOI":"10.1016\/j.jeconom.2016.08.001","article-title":"Structural Estimation of Pairwise Stable Networks With Nonnegative Externality","volume":"195","author":"Miyauchi Y.","year":"2016","journal-title":"Journal of Econometrics"},{"key":"e_1_2_10_56_1","doi-asserted-by":"crossref","first-page":"2111","DOI":"10.1016\/S1573-4412(05)80005-4","volume-title":"Handbook of Econometrics","author":"Newey W. K.","year":"1994"},{"issue":"2","key":"e_1_2_10_57_1","doi-asserted-by":"crossref","first-page":"209","DOI":"10.1016\/0304-4076(80)90007-X","article-title":"Partial Observability in Bivariate Probit Models","volume":"12","author":"Poirier D. J.","year":"1980","journal-title":"Journal of Econometrics"},{"key":"e_1_2_10_58_1","doi-asserted-by":"crossref","first-page":"106","DOI":"10.1016\/j.artint.2012.09.007","article-title":"Computing Pure Bayesian\u2010Nash Equilibria in Games With Finite Actions and Continuous Types","volume":"195","author":"Rabinovich Z.","year":"2013","journal-title":"Artificial Intelligence"},{"issue":"4","key":"e_1_2_10_59_1","doi-asserted-by":"crossref","first-page":"387","DOI":"10.1017\/nws.2021.18","article-title":"Measuring Reciprocity: Double Sampling, Concordance, and Network Construction","volume":"9","author":"Ready E.","year":"2021","journal-title":"Network Science"},{"key":"e_1_2_10_60_1","unstructured":"Ridder G. andS.Sheng.2025. \u201cTwo\u2010Step Estimation of a Strategic Network Formation Model With Clustering.\u201d arXiv: 2001.03838."},{"issue":"5","key":"e_1_2_10_61_1","doi-asserted-by":"crossref","first-page":"1829","DOI":"10.3982\/ECTA12558","article-title":"A Structural Econometric Analysis of Network Formation Games Through Subnetworks","volume":"88","author":"Sheng S.","year":"2020","journal-title":"Econometrica"},{"issue":"5","key":"e_1_2_10_62_1","doi-asserted-by":"crossref","first-page":"756","DOI":"10.1287\/mnsc.1040.0349","article-title":"Collaborative Networks as Determinants of Knowledge Diffusion Patterns","volume":"51","author":"Singh J.","year":"2005","journal-title":"Management Science"},{"issue":"1","key":"e_1_2_10_63_1","doi-asserted-by":"crossref","first-page":"1","DOI":"10.1016\/0378-8733(89)90016-6","article-title":"Rethinking Centrality: Methods and Examples","volume":"11","author":"Stephenson K.","year":"1989","journal-title":"Social Networks"},{"issue":"1","key":"e_1_2_10_64_1","doi-asserted-by":"crossref","first-page":"147","DOI":"10.1111\/1467-937X.00240","article-title":"Incomplete Simultaneous Discrete Response Model With Multiple Equilibria","volume":"70","author":"Tamer E.","year":"2003","journal-title":"Review of Economic Studies"},{"key":"e_1_2_10_65_1","unstructured":"Thirkettle M.2019. \u201cIdentification and Estimation of Network Statistics with Missing Link Data.\u201d Working paper."},{"issue":"3","key":"e_1_2_10_66_1","doi-asserted-by":"crossref","first-page":"539","DOI":"10.2307\/2951659","article-title":"Risk and Insurance in Village India","volume":"62","author":"Townsend R. M.","year":"1994","journal-title":"Econometrica"},{"issue":"3","key":"e_1_2_10_67_1","doi-asserted-by":"crossref","first-page":"495","DOI":"10.2307\/2297901","article-title":"Risk and Insurance in a Rural Credit Market: An Empirical Investigation in Northern Nigeria","volume":"61","author":"Udry C.","year":"1994","journal-title":"Review of Economic Studies"},{"issue":"1","key":"e_1_2_10_68_1","doi-asserted-by":"crossref","first-page":"23","DOI":"10.1007\/s10614-012-9315-1","article-title":"Network Formation With Heterogeneous Agents and Absolute Friction","volume":"42","author":"Vandenbossche J.","year":"2013","journal-title":"Computational Economics"},{"issue":"6380","key":"e_1_2_10_69_1","doi-asserted-by":"crossref","first-page":"1146","DOI":"10.1126\/science.aap9559","article-title":"The Spread of True and False News Online","volume":"359","author":"Vosoughi S.","year":"2018","journal-title":"Science"}],"container-title":["Journal of Applied Econometrics"],"original-title":[],"language":"en","link":[{"URL":"https:\/\/onlinelibrary.wiley.com\/doi\/pdf\/10.1002\/jae.70079","content-type":"application\/pdf","content-version":"vor","intended-application":"text-mining"},{"URL":"https:\/\/onlinelibrary.wiley.com\/doi\/full-xml\/10.1002\/jae.70079","content-type":"application\/xml","content-version":"vor","intended-application":"text-mining"},{"URL":"https:\/\/onlinelibrary.wiley.com\/doi\/pdf\/10.1002\/jae.70079","content-type":"unspecified","content-version":"vor","intended-application":"similarity-checking"}],"deposited":{"date-parts":[[2026,7,10]],"date-time":"2026-07-10T12:18:15Z","timestamp":1783685895000},"score":1,"resource":{"primary":{"URL":"https:\/\/onlinelibrary.wiley.com\/doi\/10.1002\/jae.70079"}},"subtitle":[],"short-title":[],"issued":{"date-parts":[[2026,7,10]]},"references-count":68,"alternative-id":["10.1002\/jae.70079"],"URL":"https:\/\/doi.org\/10.1002\/jae.70079","archive":["Portico"],"relation":{},"ISSN":["0883-7252","1099-1255"],"issn-type":[{"value":"0883-7252","type":"print"},{"value":"1099-1255","type":"electronic"}],"subject":[],"published":{"date-parts":[[2026,7,10]]},"assertion":[{"value":"2024-03-12","order":0,"name":"received","label":"Received","group":{"name":"publication_history","label":"Publication History"}},{"value":"2026-04-11","order":2,"name":"accepted","label":"Accepted","group":{"name":"publication_history","label":"Publication History"}},{"value":"2026-07-10","order":3,"name":"published","label":"Published","group":{"name":"publication_history","label":"Publication History"}}],"article-number":"jae.70079"}}