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Link bidding in laboratory networks

Author

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  • Cary Deck
  • Cathleen Johnson

Abstract

This paper presents the results of laboratory experiments that explore the network formation process. Performances of three institutions, each derived from theoretical models found in the literature, are compared. All three institutions are found to generate similar levels of efficiency. In hospitable environments, the institutions achieve 85% efficiency, but all three fail to generate any positive surplus when stress tested. Copyright Springer-Verlag Berlin/Heidelberg 2004

Suggested Citation

  • Cary Deck & Cathleen Johnson, 2004. "Link bidding in laboratory networks," Review of Economic Design, Springer;Society for Economic Design, vol. 8(4), pages 359-372, April.
    • Handle: RePEc:spr:reecde:v:8:y:2004:i:4:p:359-372
    DOI: 10.1007/s10058-003-0108-9
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