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

Gefry B. Alapini, Jesugnon E. Djima and Kirill Zhazhin

No 280, I4R Discussion Paper Series from The Institute for Replication (I4R)

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.

Keywords: network formation; efficiency; linear-quadratic payoffs; experiment (search for similar items in EconPapers)
JEL-codes: C92 D62 D85 (search for similar items in EconPapers)
Date: 2026
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:i4rdps:280

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