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Myopically forward-looking agents in a network formation game : theory and experimental evidence

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  • Berninghaus, Siegfried
  • Ehrhart, Karl-Martin
  • Ott, Marion

Abstract

A population of players is considered in which each agent can select her neighbors in order to play a 2x2 Hawk-Dove game with each of them. We design our experiment in continuous time where participants may change their Hawk-Dove action and/or their neighborhood at any point in time. We are interested in the resulting formation of networks and the action distributions. Compared with static Nash equilibrium (e.g., Berninghaus and Vogt, 2004, 2006; Bramoulle, Lopez-Pintado, Goyal, and Vega-Redondo, 2004) and social optimum as theoretical benchmark solutions, subjects seem to employ a more complex, forward-looking thinking. We develop an other benchmark solution, called one-step-ahead stability, that combines forward-looking belief formation with rational response and that fits the data much better.

Suggested Citation

  • Berninghaus, Siegfried & Ehrhart, Karl-Martin & Ott, Marion, 2008. "Myopically forward-looking agents in a network formation game : theory and experimental evidence," Papers 08-02, Sonderforschungsbreich 504.
    • Handle: RePEc:mnh:spaper:2309
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    File URL: https://madoc.bib.uni-mannheim.de/2309/1/dp08_02.pdf
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    Cited by:

    1. Marco Mantovani & Georg Kirchsteiger & Ana Mauleon & Vincent Vannetelbosch, 2011. "Myopic or Farsighted? An Experiment on Network Formation," Working Papers 2011.45, Fondazione Eni Enrico Mattei.
    2. Anna Conte & Daniela T. Di Cagno & Emanuela Sciubba, 2015. "Behavioral Patterns In Social Networks," Economic Inquiry, Western Economic Association International, vol. 53(2), pages 1331-1349, April.
    3. Siegfried K. Berninghaus & Bodo Vogt, 2009. "A Stochastic Model of the Co-evolution of Networks and Strategies," Rationality, Markets and Morals, Frankfurt School Verlag, Frankfurt School of Finance & Management, vol. 0(15), November.
    4. Wu, Jiadong & Zhao, Chengye, 2020. "Better immigration: Prisoner’s dilemma game with population change on dynamic network," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 556(C).
    5. Milena Tsvetkova & Vincent Buskens, 2013. "Coordination On Egalitarian Networks From Asymmetric Relations In A Social Game Of Chicken," Advances in Complex Systems (ACS), World Scientific Publishing Co. Pte. Ltd., vol. 16(01), pages 1-16.

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    More about this item

    Keywords

    Hawk-Dove game ; local interaction ; network formation ; network experiment;
    All these keywords.

    JEL classification:

    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games

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