Growing stars: A laboratory analysis of network formation

Rong Rong and Daniel Houser

Journal of Economic Behavior & Organization, 2015, vol. 117, issue C, 380-394

Abstract: Efficient information dispersion occurs with star networks, where small numbers of agents gather information for distribution to larger groups. Previous studies have shown that ex ante heterogeneity in payoff incentives among agents is sufficient for reliable star formation (Goeree et al., 2009). Using laboratory experiments, we show stars reliably emerge among ex ante homogeneous agents under specific institutional environments. Our results help to explain why star networks emerge frequently among homogeneous groups, particularly rural farming communities (Conley and Udry, 2010). Our findings have implications for developing countries where it is crucial to create mechanisms to promote efficient information sharing.

Keywords: Social networks; Star network formation; Cluster analysis; Experiments (search for similar items in EconPapers)
JEL-codes: C4 C7 C9 D7 (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (10)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0167268115001997
Full text for ScienceDirect subscribers only

Related works:
Working Paper: Growing Stars: A Laboratory Analysis of Network Formation (2012)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:jeborg:v:117:y:2015:i:c:p:380-394

DOI: 10.1016/j.jebo.2015.07.008

Access Statistics for this article

Journal of Economic Behavior & Organization is currently edited by Houser, D. and Puzzello, D.

More articles in Journal of Economic Behavior & Organization from Elsevier
Bibliographic data for series maintained by Catherine Liu ().