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A Network Experiment in Continuous Time:

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Author Info
Berninghaus, Siegfried K. () (Universität Karlsruhe)
Ehrhart, Karl-Martin () (Universitaet Karlsruhe)
Ott, Marion () (Universitaet Karlsruhe)

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Abstract

In recent work on non-cooperative network formation star-shaped networks play an important role. In a particular theoretical model of Bala and Goyal (2000) center-sponsored stars are the only strict Nash networks. In testing this theoretical model Falk and Kosfeld (2003) do not find any experimental evidence that players select the center-sponsored star. Based on a slight modification of Bala and Goyal�s model we design a network formation experiment with varying link costs in which almost all groups not only reach a strict Nash network once but also switch strict Nash networks several times. The main innovation in our experiment is to use a continuous time framework which makes coordination on �stars� much easier than simultaneous strategy adaptation in discrete time.

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Publisher Info
Paper provided by Sonderforschungsbereich 504, Universität Mannheim & Sonderforschungsbereich 504, University of Mannheim in its series Sonderforschungsbereich 504 Publications with number 05-02.

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Length: 37 pages
Date of creation: 31 Jan 2005
Date of revision:
Handle: RePEc:xrs:sfbmaa:05-02

Note: We thank Sanjeev Goyal, Oliver Kirchkamp, Karim Sadrieh, Reinhard Selten, and Bodo Vogt for helpful comments.
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Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Siegfried Berninghaus & Karl-Martin Ehrhart & Claudia Keser, 1999. "Continuous-Time Strategy Selection in Linear Population Games," Experimental Economics, Springer, vol. 2(1), pages 41-57, August. [Downloadable!] (restricted)
  2. Venkatesh Bala & Sanjeev Goyal, 2000. "A Noncooperative Model of Network Formation," Econometrica, Econometric Society, vol. 68(5), pages 1181-1230, September.
  3. Goyal, Sanjeev & Vega-Redondo, Fernando, 2005. "Network formation and social coordination," Games and Economic Behavior, Elsevier, vol. 50(2), pages 178-207, February. [Downloadable!] (restricted)
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  4. Plott, Charles R. & Callander, Steven, 2002. "Principles of network development and evolution: An experimental study (formally - Networks: An Experimental Study)," Working Papers 1156, California Institute of Technology, Division of the Humanities and Social Sciences. [Downloadable!]
  5. Werner Güth & Maria Vittoria Levati & Andreas Stiehler, . "Privately Contributing to Public Goods over Time - An Experimental Study -," Papers on Strategic Interaction 2002-01, Max Planck Institute of Economics, Strategic Interaction Group. [Downloadable!]
  6. Cary Deck & Cathleen Johnson, 2004. "Link bidding in laboratory networks," Review of Economic Design, Springer, vol. 8(4), pages 359-372, 04. [Downloadable!] (restricted)
  7. Falk, Armin & Kosfeld, Michael, 2003. "It's All About Connections: Evidence on Network Formation," CEPR Discussion Papers 3970, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  8. Dean Corbae & John Duffy, 2003. "Experiments with Network Formation," Levine's Working Paper Archive 666156000000000319, David K. Levine. [Downloadable!]
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  9. Berninghaus, Siegfried K. & Vogt, Bodo, 2003. "Network Formation and Coordination Games," Sonderforschungsbereich 504 Publications 03-16, Sonderforschungsbereich 504, Universität Mannheim & Sonderforschungsbereich 504, University of Mannheim.
  10. Jackson, Matthew O. & Wolinsky, Asher, 1996. "A Strategic Model of Social and Economic Networks," Journal of Economic Theory, Elsevier, vol. 71(1), pages 44-74, October. [Downloadable!] (restricted)
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