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Link bidding in laboratory networks

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Cary Deck ()
Cathleen Johnson ()

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Abstract

This paper presents the results of laboratory experiments that explore the network formation process. Performances of three institutions, each derived from theoretical models found in the literature, are compared. All three institutions are found to generate similar levels of efficiency. In hospitable environments, the institutions achieve 85% efficiency, but all three fail to generate any positive surplus when stress tested. Copyright Springer-Verlag Berlin/Heidelberg 2004

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File URL: http://hdl.handle.net/10.1007/s10058-003-0108-9
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Publisher Info
Article provided by Springer in its journal Review Economic Design.

Volume (Year): 8 (2004)
Issue (Month): 4 (04)
Pages: 359-372
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Handle: RePEc:spr:reecde:v:8:y:2004:i:4:p:359-372

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Related research
Keywords: Network formation; experimental economics; institutional design;

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  1. Sudipta Sarangi & R. Kannan & L. Ray, . "The Structure of Information Networks," Departmental Working Papers 2003-01, Department of Economics, Louisiana State University. [Downloadable!]
    Other versions:
  2. Steffen Huck & Gabriele K. Ruchala & Jean-Robert Tyran, 2006. "Competition Fosters Trust," Discussion Papers 06-22, University of Copenhagen. Department of Economics. [Downloadable!]
    Other versions:
  3. Alexander Elbittar & Rodrigo Harrison & Roberto Muñoz, 2007. "Network Structure in a Link-formation Game: An Experimental Study," Levine's Working Paper Archive 122247000000001708, David K. Levine. [Downloadable!]
    Other versions:
  4. Pablo Brañas-Garza & Ramón Cobo-Reyes & Natalia Jiménez & Giovanni Ponti, 2005. "An experimental device to elicit social networks," ThE Papers 05/19, Department of Economic Theory and Economic History of the University of Granada.. [Downloadable!]
  5. Siegfried Berninghaus & Karl-Martin Ehrhart & Marion Ott & Bodo Vogt, 2007. "Evolution of networks—an experimental analysis," Journal of Evolutionary Economics, Springer, vol. 17(3), pages 317-347, June. [Downloadable!] (restricted)
  6. Berninghaus, Siegfried K. & Ehrhart, Karl-Martin & Ott, Marion & Vogt, Bodo, 2004. "Searching for "Stars" - Recent Experimental Results on Network Formation -," Sonderforschungsbereich 504 Publications 04-34, Sonderforschungsbereich 504, Universität Mannheim & Sonderforschungsbereich 504, University of Mannheim. [Downloadable!]
  7. Michael Kosfeld, . "Network Experiments," IEW - Working Papers iewwp152, Institute for Empirical Research in Economics - IEW. [Downloadable!]
  8. Berninghaus, Siegfried K. & Ehrhart, Karl-Martin & Ott, Marion, 2005. "A Network Experiment in Continuous Time:," Sonderforschungsbereich 504 Publications 05-02, Sonderforschungsbereich 504, Universität Mannheim & Sonderforschungsbereich 504, University of Mannheim.
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