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Link bidding in laboratory networks

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Author Info
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

Cited by:
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  1. Steffen Huck & Gabriele K. Ruchala & Jean-Robert Tyran, 2006. "Competition Fosters Trust," Discussion Papers 06-22, University of Copenhagen. Department of Economics. [Downloadable!]
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