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A Network Experiment in Continuous Time:

Author

Listed:
  • Berninghaus, Siegfried K.

    (Universität Karlsruhe)

  • Ehrhart, Karl-Martin

    (Universitaet Karlsruhe)

  • Ott, Marion

    (Universitaet Karlsruhe)

Abstract

In recent work on non-cooperative network formation star-shaped networks play an important role. In a particular theoretical model of Bala and Goyal (2000) center-sponsored stars are the only strict Nash networks. In testing this theoretical model Falk and Kosfeld (2003) do not find any experimental evidence that players select the center-sponsored star. Based on a slight modification of Bala and Goyal�s model we design a network formation experiment with varying link costs in which almost all groups not only reach a strict Nash network once but also switch strict Nash networks several times. The main innovation in our experiment is to use a continuous time framework which makes coordination on �stars� much easier than simultaneous strategy adaptation in discrete time.

Suggested Citation

  • Berninghaus, Siegfried K. & Ehrhart, Karl-Martin & Ott, Marion, 2005. "A Network Experiment in Continuous Time:," Sonderforschungsbereich 504 Publications 05-02, Sonderforschungsbereich 504, Universität Mannheim;Sonderforschungsbereich 504, University of Mannheim.
    • Handle: RePEc:xrs:sfbmaa:05-02
    Note: We thank Sanjeev Goyal, Oliver Kirchkamp, Karim Sadrieh, Reinhard Selten, and Bodo Vogt for helpful comments.
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    Cited by:

    1. A. Stefano Caria & Marcel Fafchamps, 2015. "Can Farmers Create Efficient Information Networks? Experimental Evidence from Rural India," CSAE Working Paper Series 2015-07, Centre for the Study of African Economies, University of Oxford.
    2. Dooan, Gonul & van Assen, M.A.L.M. & van de Rijt, Arnout & Buskens, Vincent, 2007. "The Stability of Exchange Networks," Coalition Theory Network Working Papers 9098, Fondazione Eni Enrico Mattei (FEEM).
    3. Gönül Dogan & M.A.L.M. van Assen & Arnout van de Rijt & Vincent Buskens, 2007. "The Stability of Exchange Networks," Working Papers 2007.66, Fondazione Eni Enrico Mattei.

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