BEHAVIORAL PATTERNS IN SOCIAL NETWORKS

Anna Conte, Daniela Di Cagno and Emanuela Sciubba

Economic Inquiry, 2015, vol. 53, issue 2, 1331-1349

Abstract: type="main" xml:id="ecin12191-abs-0001"> In this article, we focus on the analysis of individual decision-making for the formation of social networks, using experimentally generated data. We analyze the determinants of the individual demand for links under the assumption of agents' static expectations and identify patterns of behavior that correspond to three specific objectives: players propose links so as to maximize expected profits (myopic best response strategy); players attempt to establish the largest number of direct links (reciprocator strategy); and players maximize expected profits per direct link (opportunistic strategy). These strategies explain approximately 74% of the observed choices. We demonstrate that they are deliberately adopted and, by means of a finite mixture model, well identified and separated in our sample . ( JEL C33, C35, C90, D85)

Date: 2015
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Working Paper: Behavioural patterns in social networks (2011)
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