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Growing stars: A laboratory analysis of network formation

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  • Rong, Rong
  • Houser, Daniel

Abstract

Efficient information dispersion occurs with star networks, where small numbers of agents gather information for distribution to larger groups. Previous studies have shown that ex ante heterogeneity in payoff incentives among agents is sufficient for reliable star formation (Goeree et al., 2009). Using laboratory experiments, we show stars reliably emerge among ex ante homogeneous agents under specific institutional environments. Our results help to explain why star networks emerge frequently among homogeneous groups, particularly rural farming communities (Conley and Udry, 2010). Our findings have implications for developing countries where it is crucial to create mechanisms to promote efficient information sharing.

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  • Rong, Rong & Houser, Daniel, 2015. "Growing stars: A laboratory analysis of network formation," Journal of Economic Behavior & Organization, Elsevier, vol. 117(C), pages 380-394.
  • Handle: RePEc:eee:jeborg:v:117:y:2015:i:c:p:380-394
    DOI: 10.1016/j.jebo.2015.07.008
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    Citations

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    Cited by:

    1. Boris van Leeuwen & Theo Offerman & Arthur Schram, 2013. "Superstars need Social Benefits: An Experiment on Network Formation," Tinbergen Institute Discussion Papers 13-112/I, Tinbergen Institute.
    2. Offerman, Theo & Schram, Arthur & Van Leeuwen, Boris, 2014. "Competition for status creates superstars: An experiment on public good provision and network formation," IAST Working Papers 14-16, Institute for Advanced Study in Toulouse (IAST).
    3. repec:eee:phsmap:v:495:y:2018:i:c:p:353-392 is not listed on IDEAS
    4. Liza Charroin, 2016. "The effect of sequentiality and heterogeneity in network formation games," Working Papers halshs-01368067, HAL.
    5. repec:eee:jeborg:v:141:y:2017:i:c:p:43-63 is not listed on IDEAS
    6. Liza Charroin, 2016. "The effect of sequentiality and heterogeneity in network formation games," Working Papers 1629, Groupe d'Analyse et de Théorie Economique Lyon St-Étienne (GATE Lyon St-Étienne), Université de Lyon.
    7. Francesco Fallucchi & R. Andrew Luccasen & Theodore L. Turocy, 2017. "Behavioural types in public goods games: A re-analysis by hierarchical clutering," Working Paper series, University of East Anglia, Centre for Behavioural and Experimental Social Science (CBESS) 17-01R, School of Economics, University of East Anglia, Norwich, UK..

    More about this item

    Keywords

    Social networks; Star network formation; Cluster analysis; Experiments;

    JEL classification:

    • C4 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics
    • C7 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory
    • C9 - Mathematical and Quantitative Methods - - Design of Experiments
    • D7 - Microeconomics - - Analysis of Collective Decision-Making

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