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An experimental analysis of team production in networks

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  • Enrique Fatas
  • Miguel Meléndez-Jiménez
  • Hector Solaz

Abstract

Experimental and empirical evidence highlights the role of networks on social outcomes. In this paper we test the properties of exogenously fixed networks in team production. Subjects make the same decisions in a team-work environment under four different organizational networks: The line, the circle, the star, and the complete network. In all the networks, links make information available to neighbors. This design allows us to analyze decisions across networks and a variety of subjects’ types in a standard linear team production game. Contribution levels differ significantly across networks and the star is the most efficient incomplete one. Moreover, our results suggest that subjects act as conditional cooperators with respect to the information received from the network.
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  • Enrique Fatas & Miguel Meléndez-Jiménez & Hector Solaz, 2010. "An experimental analysis of team production in networks," Experimental Economics, Springer;Economic Science Association, vol. 13(4), pages 399-411, December.
  • Handle: RePEc:kap:expeco:v:13:y:2010:i:4:p:399-411
    DOI: 10.1007/s10683-010-9248-2
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    1. Carpenter, Jeffrey P., 2007. "Punishing free-riders: How group size affects mutual monitoring and the provision of public goods," Games and Economic Behavior, Elsevier, vol. 60(1), pages 31-51, July.
    2. Enrique Fatas & Miguel Meléndez-Jiménez & Hector Solaz, 2010. "An experimental analysis of team production in networks," Experimental Economics, Springer;Economic Science Association, vol. 13(4), pages 399-411, December.
    3. Andreoni, James & Petrie, Ragan, 2004. "Public goods experiments without confidentiality: a glimpse into fund-raising," Journal of Public Economics, Elsevier, vol. 88(7-8), pages 1605-1623, July.
    4. Kosfeld Michael, 2004. "Economic Networks in the Laboratory: A Survey," Review of Network Economics, De Gruyter, vol. 3(1), pages 1-23, March.
    5. Rachel Croson & Enrique Fatas & Tibor Neugebauer, 2006. "An Experimental Analysis Of Conditional Cooperation," Working Papers. Serie AD 2006-24, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
    6. Gachter, Simon & Fehr, Ernst & Kment, Christiane, 1996. "Does Social Exchange Increase Voluntary Cooperation?," Kyklos, Wiley Blackwell, vol. 49(4), pages 541-554.
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    Cited by:

    1. Boris van Leeuwen & Theo Offerman & Arthur Schram, 2020. "Competition for Status Creates Superstars: an Experiment on Public Good Provision and Network Formation," Journal of the European Economic Association, European Economic Association, vol. 18(2), pages 666-707.
    2. Charness, Gary & Feri, Francesco & Meléndez-Jiménez, Miguel A. & Sutter, Matthias, 2012. "Equilibrium Selection in Experimental Games on Networks," University of California at Santa Barbara, Economics Working Paper Series qt51v6w9hd, Department of Economics, UC Santa Barbara.
    3. Antinyan, Armenak & Horváth, Gergely & Jia, Mofei, 2020. "Positional concerns and social network structure: An experiment," European Economic Review, Elsevier, vol. 129(C).
    4. Boris Leeuwen & Abhijit Ramalingam & David Rojo Arjona & Arthur Schram, 2019. "Centrality and cooperation in networks," Experimental Economics, Springer;Economic Science Association, vol. 22(1), pages 178-196, March.
    5. Caria, A. Stefano & Fafchamps, Marcel, 2019. "Expectations, network centrality, and public good contributions: Experimental evidence from India," Journal of Economic Behavior & Organization, Elsevier, vol. 167(C), pages 391-408.
    6. Gary Charness & Francesco Feri & Miguel A. Meléndez‐Jiménez & Matthias Sutter, 2014. "Experimental Games on Networks: Underpinnings of Behavior and Equilibrium Selection," Econometrica, Econometric Society, vol. 82(5), pages 1615-1670, September.
    7. Martin Daniel Siyaranamual, 2015. "Are Results of Social- and Self-Image Concerns in Voluntary Contributions Game Similar?," Working Papers in Economics and Development Studies (WoPEDS) 201501, Department of Economics, Padjadjaran University, revised Feb 2015.
    8. Ramalingam, Abhijit & Rojo Arjona, David & Schram, Arthur & Van Leeuwen, Boris, 2015. "Authority and Centrality: Power and Cooperation in Social Dilemma Networks," IAST Working Papers 15-23, Institute for Advanced Study in Toulouse (IAST).
    9. DeAngelo, Gregory & Gee, Laura Katherine, 2018. "Peers or Police? Detection and Sanctions in the Provision of Public Goods," IZA Discussion Papers 11540, Institute of Labor Economics (IZA).
    10. Angelovski, Andrej & Di Cagno, Daniela & Güth, Werner & Marazzi, Francesca & Panaccione, Luca, 2018. "Behavioral spillovers in local public good provision: An experimental study," Journal of Economic Psychology, Elsevier, vol. 67(C), pages 116-134.
    11. Sergio Currarini & Francesco Feri & Bjoern Hartig & Miguel A. Meléndez-Jiménez, 2020. "To Share or Not to Share: An Experiment on Information Transmission in Networks," Working Papers 2020-06, Universidad de Málaga, Department of Economic Theory, Málaga Economic Theory Research Center.
    12. A Stefano Caria & Marcel Fafchamps, 2014. "Cooperation and Expectations in Networks: Evidence from a Network Public Good Experiment in Rural India," CSAE Working Paper Series 2014-33, Centre for the Study of African Economies, University of Oxford.
    13. Ramalingam, Abhijit & Godoy, Sara & Morales, Antonio J. & Walker, James M., 2016. "An individualistic approach to institution formation in public good games," Journal of Economic Behavior & Organization, Elsevier, vol. 129(C), pages 18-36.
    14. DeAngelo, Gregory & Gee, Laura K., 2020. "Peers or police?: The effect of choice and type of monitoring in the provision of public goods," Games and Economic Behavior, Elsevier, vol. 123(C), pages 210-227.
    15. Boosey, Luke A., 2017. "Conditional cooperation in network public goods experiments," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 69(C), pages 108-116.
    16. Mantilla, César, 2015. "Communication networks in common-pool resource games: Field experimental evidence," Journal of Economic Behavior & Organization, Elsevier, vol. 118(C), pages 215-226.
    17. Kristoffel Grechenig & Andreas Nicklisch & Christian Thöni, 2010. "Punishment Despite Reasonable Doubt—A Public Goods Experiment with Sanctions Under Uncertainty," Journal of Empirical Legal Studies, John Wiley & Sons, vol. 7(4), pages 847-867, December.
    18. Enrique Fatas & Miguel Meléndez-Jiménez & Hector Solaz, 2010. "An experimental analysis of team production in networks," Experimental Economics, Springer;Economic Science Association, vol. 13(4), pages 399-411, December.
    19. Enrique Fatas & Miguel Meléndez-Jiménez & Antonio Morales & Hector Solaz, 2015. "Public goods and decay in networks," SERIEs: Journal of the Spanish Economic Association, Springer;Spanish Economic Association, vol. 6(1), pages 73-90, March.
    20. José Gabriel Castillo & Zhicheng Phil Xu & Ping Zhang & Xianchen Zhu, 2021. "The effects of centralized power and institutional legitimacy on collective action," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 56(2), pages 385-419, February.
    21. Andreas Leibbrandt & Abhijit Ramalingam & Lauri Sääksvuori & James Walker, 2015. "Incomplete punishment networks in public goods games: experimental evidence," Experimental Economics, Springer;Economic Science Association, vol. 18(1), pages 15-37, March.
    22. Andrweas Leibbrandt & Abhijit Ramalingam & Lauri Sääksvuori & James M. Walker, 2012. "Broken Punishment Networks in Public Goods Games: Experimental Evidence," Jena Economic Research Papers 2012-004, Friedrich-Schiller-University Jena.
    23. Marcel Fafchamps & Di Mo, 2018. "Peer effects in computer assisted learning: evidence from a randomized experiment," Experimental Economics, Springer;Economic Science Association, vol. 21(2), pages 355-382, June.

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    More about this item

    Keywords

    Team production; Networks; Information; C92; H41;
    All these keywords.

    JEL classification:

    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior

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