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Myopic or Farsighted? An Experiment on Network Formation

Marco Mantovani, Georg Kirchsteiger, Ana Mauleon and Vincent Vannetelbosch

No 108256, Climate Change and Sustainable Development from Fondazione Eni Enrico Mattei (FEEM)

Abstract: Pairwise stability (Jackson and Wolinsky, 1996) is the standard stability concept in network formation. It assumes myopic behavior of the agents in the sense that they do not forecast how others might react to their actions. Assuming that agents are farsighted, related stability concepts have been proposed. We design a simple network formation experiment to test these theories. Our results provide support for farsighted stability and strongly reject the idea of myopic behavior.

Keywords: Environmental; Economics; and; Policy (search for similar items in EconPapers)
Pages: 32
Date: 2011-06
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Citations: View citations in EconPapers (12)

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Working Paper: Myopic or farsighted? An experiment on network formation (2011) Downloads
Working Paper: Myopic or Farsighted? An Experiment on Network Formation (2011) Downloads
Working Paper: Myopic or Farsighted? An Experiment on Network Formation (2011) Downloads
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Persistent link: https://EconPapers.repec.org/RePEc:ags:feemcl:108256

DOI: 10.22004/ag.econ.108256

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