We present a new model for reasoning about the way information is shared
among friends in a social network, and the resulting ways in which it spreads.
Our model formalizes the intuition that revealing personal information in
social settings involves a trade-off between the benefits of sharing
information with friends, and the risks that additional gossiping will
propagate it to people with whom one is not on friendly terms. We study the
behavior of rational agents in such a situation, and we characterize the
existence and computability of stable information-sharing networks, in which
agents do not have an incentive to change the partners with whom they share
information. We analyze the implications of these stable networks for social
welfare, and the resulting fragmentation of the social network
