IDEAS home Printed from https://ideas.repec.org/p/fem/femwpa/2017.30.html
   My bibliography  Save this paper

Network Formation and Disruption - An Experiment - Are Efficient Networks too Complex?

Author

Listed:
  • Sonja Brangewitz

    (Paderborn University)

  • Behnud Mir Djawadi

    (Paderborn University)

  • Angelika Endres

    (Paderborn University)

  • Britta Hoyer

    (Paderborn University)

Abstract

We experimentally study the emergence of networks under a known external threat. To be more specific, we deal with the question if subjects in the role of a strategic Designer are able to form safe and efficient networks while facing a strategic Adversary who is going to attack their networks. This investigation relates theoretical predictions by Dziubinski and Goyal (2013) to actual observed behaviour. Varying the costs for protecting nodes, we designed and tested two treatments with different predictions for the equilibrium network. Furthermore, the influence of the subjects' farsightedness on their decision-making process was elicited and analysed. We find that while subjects are able to build safe networks in both treatments, equilibrium networks are only built in one of the two treatments. In the other treatment, predominantly safe networks are built but they are not efficient. Additionally, we find that farsightedness -as measured in our experiment- has no influence on whether subjects are able to build safe or efficient networks.

Suggested Citation

  • Sonja Brangewitz & Behnud Mir Djawadi & Angelika Endres & Britta Hoyer, 2017. "Network Formation and Disruption - An Experiment - Are Efficient Networks too Complex?," Working Papers 2017.30, Fondazione Eni Enrico Mattei.
    • Handle: RePEc:fem:femwpa:2017.30
    as

    Download full text from publisher

    File URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2017-030-6.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Bravard, Christophe & Charroin, Liza & Touati, Corinne, 2017. "Optimal design and defense of networks under link attacks," Journal of Mathematical Economics, Elsevier, vol. 68(C), pages 62-79.
    2. Venkatesh Bala & Sanjeev Goyal, 2000. "A Noncooperative Model of Network Formation," Econometrica, Econometric Society, vol. 68(5), pages 1181-1230, September.
    3. Dan Kovenock & Brian Roberson, 2015. "The Optimal Defense of Network Connectivity," Working Papers 15-24, Chapman University, Economic Science Institute.
    4. Marco Pelliccia, 2020. "Decentralized Defence of a (Directed) Network Structure," Defence and Peace Economics, Taylor & Francis Journals, vol. 31(6), pages 659-676, August.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Britta Hoyer & Stephanie Rosenkranz, 2018. "Determinants of Equilibrium Selection in Network Formation: An Experiment," Games, MDPI, vol. 9(4), pages 1-25, November.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Djawadi, Behnud Mir & Endres, Angelika & Hoyer, Britta & Recker, Sonja, 2019. "Network formation and disruption - An experiment are equilibrium networks too complex?," Journal of Economic Behavior & Organization, Elsevier, vol. 157(C), pages 708-734.
    2. Haller, Hans & Hoyer, Britta, 2019. "The common enemy effect under strategic network formation and disruption," Journal of Economic Behavior & Organization, Elsevier, vol. 162(C), pages 146-163.
    3. Hans Haller & Britta Hoyer, 2015. "Note on the Common Enemy Effect under Strategic Network Formation and Disruption," Working Papers e07-49, Virginia Polytechnic Institute and State University, Department of Economics.
    4. Billand, Pascal & Bravard, Christophe & Sarangi, Sudipta, 2012. "Existence of Nash networks and partner heterogeneity," Mathematical Social Sciences, Elsevier, vol. 64(2), pages 152-158.
    5. Falk Armin & Kosfeld Michael, 2012. "It's all about Connections: Evidence on Network Formation," Review of Network Economics, De Gruyter, vol. 11(3), pages 1-36, September.
    6. Yaron Leitner, 2004. "Financial networks: contagion, commitment, and private sector bailouts," Working Papers 02-9, Federal Reserve Bank of Philadelphia.
    7. Rodrigo J. Harrison & Roberto Munoz, 2003. "Stability and Equilibrium Selection in a Link Formation Game," Game Theory and Information 0306004, University Library of Munich, Germany.
    8. Frank H. Page & Myrna H. Wooders, 2009. "Endogenous Network Dynamics," Working Papers 2009.28, Fondazione Eni Enrico Mattei.
    9. Dev, Pritha, 2014. "Identity and fragmentation in networks," Mathematical Social Sciences, Elsevier, vol. 71(C), pages 86-100.
    10. Arthur Schram & Boris Van Leeuwen & Theo Offerman, 2013. "Superstars Need Social Benefits: An Experiment on Network Formation," Working Papers 1306, Departament Empresa, Universitat Autònoma de Barcelona, revised Jul 2013.
    11. Eunae Yoo & Elliot Rabinovich & Bin Gu, 2020. "The Growth of Follower Networks on Social Media Platforms for Humanitarian Operations," Production and Operations Management, Production and Operations Management Society, vol. 29(12), pages 2696-2715, December.
    12. Simpson Zhang & Mihaela van der Schaar, 2018. "Reputational Dynamics in Financial Networks During a Crisis," Working Papers 18-03, Office of Financial Research, US Department of the Treasury.
    13. Lorenzo Ductor & Sanjeev Goyal & Anja Prummer, 2018. "Gender & Collaboration," Working Papers 856, Queen Mary University of London, School of Economics and Finance.
    14. Rajgopal Kannan & Lydia Ray & Sudipta Sarangi, 2007. "The structure of information networks," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 30(1), pages 119-134, January.
    15. Cilem Selin Hazir & Corinne Autant-Bernard, 2012. "Using Affiliation Networks to Study the Determinants of Multilateral Research Cooperation Some empirical evidence from EU Framework Programs in biotechnology," Working Papers 1212, Groupe d'Analyse et de Théorie Economique Lyon St-Étienne (GATE Lyon St-Étienne), Université de Lyon.
    16. Ana Mauleon & Huasheng Song & Vincent Vannetelbosch, 2010. "Networks of Free Trade Agreements among Heterogeneous Countries," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 12(3), pages 471-500, June.
    17. Markus Kinateder & Luca Paolo Merlino, 2021. "The Evolution of Networks and Local Public Good Provision: A Potential Approach," Games, MDPI, vol. 12(3), pages 1-12, July.
    18. Konno, Tomohiko, 2013. "An imperfect competition on scale-free networks," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 392(21), pages 5453-5460.
    19. Finneran, Lisa & Kelly, Morgan, 2003. "Social networks and inequality," Journal of Urban Economics, Elsevier, vol. 53(2), pages 282-299, March.
    20. Joost Vandenbossche & Thomas Demuynck, 2013. "Network Formation with Heterogeneous Agents and Absolute Friction," Computational Economics, Springer;Society for Computational Economics, vol. 42(1), pages 23-45, June.

    More about this item

    Keywords

    Networks Experiment; Network Design; Network Defence; Network Disruption;
    All these keywords.

    JEL classification:

    • D03 - Microeconomics - - General - - - Behavioral Microeconomics: Underlying Principles
    • D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation
    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:fem:femwpa:2017.30. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Alberto Prina Cerai (email available below). General contact details of provider: https://edirc.repec.org/data/feemmit.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.