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To Share or Not to Share: An Experiment on Information Transmission in Networks

Author

Listed:
  • Sergio Currarini
  • Francesco Feri
  • Bjoern Hartig
  • Miguel A. Meléndez-Jiménez

Abstract

We design an experiment to study how agents make use of information in networks. Agents receive payoff-relevant signals automatically shared with neighbors. We compare the use of information in different network structures, considering games in which strategies are substitute, complement and orthog- onal. To study the incentives to share information across games, we also allow subjects to modify the network before playing the game. We find behavioral deviations from the theoretical prediction in the use of information, which de- pend on the network structure, the position in the network and the strategic nature of the game. There is also a bias toward oversharing information, which is related to risk aversion and the position in the network.

Suggested Citation

  • Sergio Currarini & Francesco Feri & Bjoern Hartig & Miguel A. Meléndez-Jiménez, "undated". "To Share or Not to Share: An Experiment on Information Transmission in Networks," Discussion Papers in Economics 20/08, Division of Economics, School of Business, University of Leicester.
    • Handle: RePEc:lec:leecon:20/08
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    References listed on IDEAS

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    More about this item

    Keywords

    Networks; experiment; information sharing; strategic complements; strategic substitutes; pairwise stability;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation

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