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Behavioural patterns in social networks

  • Anna Contea

    (Max Planck Institute of Economics, Jena)

  • Daniela T. Di Cagno

    (LUISS University, Rome)

  • Emanuela Sciubbad

    (Birkbeck College, University of London)

In this paper, we focus on the analysis of individual decision making for the formation of social networks, using experimentally generated data. We first analyse the determinants of the individual demand for links under the assumption of agents' static expectations. The results of this exercise subsequently allow us to identify patterns of behaviour that can be subsumed in three strategies of link formation: 1) reciprocator strategy - players propose links to those from whom they have received link proposals in the previous round; 2) myopic best response strategy - players aim to profit from maximisation; 3) opportunistic strategy - players reciprocate link proposals to those who have the largest number of connections. We find that these strategies explain approximately 76% of the observed choices. We finally estimate a mixture model to highlight the proportion of the population who adopt each of these strategies.

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Paper provided by Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics in its series Jena Economic Research Papers with number 2011-060.

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Date of creation: 20 Dec 2011
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Handle: RePEc:jrp:jrpwrp:2011-060
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  11. Bhaskar Dutta & Sayantan Ghosal & Debraj Ray, 2004. "Farsighted Network Formation," Working papers 122, Centre for Development Economics, Delhi School of Economics.
  12. Anna Conte & Peter G. Moffatt, 2010. "The econometric modeling of social Preferences," Jena Economic Research Papers 2010-042, Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics.
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