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Restricting the benefit flow from neighbors : experiments on network formation

Author

Listed:
  • Berninghaus, Siegfried
  • Ott, Marion
  • Vogt, Bodo

Abstract

In an experimental framework on network formation inspired by the two-way information flow model of Bala and Goyal (2000), we observe that many groups participating in the experiment reach the strict Nash network resp. come very close to this network. Compared to the results of previous network experiments this is new. Among other things, the role of inequity aversion in explaining our experimental results is discussed.

Suggested Citation

  • Berninghaus, Siegfried & Ott, Marion & Vogt, Bodo, 2004. "Restricting the benefit flow from neighbors : experiments on network formation," Papers 04-38, Sonderforschungsbreich 504.
  • Handle: RePEc:mnh:spaper:2704
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    File URL: https://madoc.bib.uni-mannheim.de/2704/1/dp04_38.pdf
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    More about this item

    Keywords

    Network formation ; Nash networks ; network experiment;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior

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