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Searching for "Stars" - Recent Experimental Results on Network Formation -

Author

Listed:
  • Berninghaus, Siegfried K.

    (Universität Karlsruhe)

  • Ehrhart, Karl-Martin

    (Universitaet Karlsruhe)

  • Ott, Marion

    (Universitaet Karlsruhe)

  • Vogt, Bodo

    (Universität Magdeburg)

Abstract

Inspired by the theoretical results on network formation by Bala and Goyal (2000) and experimental evidence by Plott and Callander (2002) and Falk and Kosfeld (2003) we design network formation experiments in discrete and continuous time. Particularly in the continuous time experiment, we observe that many groups not only reach a strict Nash network but also switch to other strict Nash networks during the course of time. Strict Nash networks, therefore, prove to be a good indicator for predicting network formation. In explaining our results, we highlight the role of the complexity of network structures, of inequity aversion, and the players� activity levels as most important determinants for forming strict Nash networks.

Suggested Citation

  • Berninghaus, Siegfried K. & Ehrhart, Karl-Martin & Ott, Marion & Vogt, Bodo, 2004. "Searching for "Stars" - Recent Experimental Results on Network Formation -," Sonderforschungsbereich 504 Publications 04-34, Sonderforschungsbereich 504, Universität Mannheim;Sonderforschungsbereich 504, University of Mannheim.
    • Handle: RePEc:xrs:sfbmaa:04-34
    Note: Financial support from the Deutsche Forschungsgemeinschaft, SFB 504, at the University of Mannheim, is gratefully acknowledged.
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    Cited by:

    1. Anthony Ziegelmeyer & Katinka Pantz, 2005. "Collaborative Networks in Experimental Triopolies," Papers on Strategic Interaction 2005-38, Max Planck Institute of Economics, Strategic Interaction Group.
    2. Charroin, Liza, 2023. "Heterogeneity in sequential network formation games," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 107(C).
    3. Siegfried Berninghaus & Karl-Martin Ehrhart & Marion Ott, 2006. "A network experiment in continuous time: The influence of link costs," Experimental Economics, Springer;Economic Science Association, vol. 9(3), pages 237-251, September.

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