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A comment on "Network formation and efficiency in linear-quadratic games: An experimental study"

Author

Listed:
  • Alapini, Gefry B.
  • Djima, Jesugnon E.
  • Zhazhin, Kirill

Abstract

We replicate Horváth (2025), experimentally studying link formation and effort in a linear-quadratic game with positive externalities. Across five treatments, subjects exert 38-97 percent more effort than the Nash benchmark yet create too few links, depressing payoffs. In groups of five, the complete network appears in roughly 25 percent of final rounds (66-76 percent if deviations of ±2 links are allowed); in groups of nine it is almost never reached. Larger groups and lower link costs fail to improve connectivity. Following the original procedures and analysis step-for-step, our replication reproduces the sign, magnitude, and statistical significance of every reported effect. Robustness checks-learning, benefit salience, group benchmarking, alternative clustering, and multiple link-formation specifications- confirm the core pattern: persistent over-provision of effort coupled with under-provision of links, generating substantial efficiency losses.

Suggested Citation

  • Alapini, Gefry B. & Djima, Jesugnon E. & Zhazhin, Kirill, 2026. "A comment on "Network formation and efficiency in linear-quadratic games: An experimental study"," I4R Discussion Paper Series 280, The Institute for Replication (I4R).
  • Handle: RePEc:zbw:i4rdps:280
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    Keywords

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    JEL classification:

    • D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation
    • D62 - Microeconomics - - Welfare Economics - - - Externalities
    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior

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