Myopic or Farsighted? An Experiment on Network Formation

Georg Kirchsteiger, Vincent Vannetelbosch, Ana Mauleon and Marco Mantovani

No 8263, CEPR Discussion Papers from C.E.P.R. Discussion Papers

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: Myopic and farsighted stability; Network formation; Experiment (search for similar items in EconPapers)
JEL-codes: C91 C92 D85 (search for similar items in EconPapers)
Date: 2011-02
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (12)

Downloads: (external link)
https://cepr.org/publications/DP8263 (application/pdf)
CEPR Discussion Papers are free to download for our researchers, subscribers and members. If you fall into one of these categories but have trouble downloading our papers, please contact us at subscribers@cepr.org

Related works:
Working Paper: Myopic or Farsighted? An Experiment on Network Formation (2011)
Working Paper: Myopic or farsighted? An experiment on network formation (2011)
Working Paper: Myopic or Farsighted? An Experiment on Network Formation (2011)
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:cpr:ceprdp:8263

Ordering information: This working paper can be ordered from
https://cepr.org/publications/DP8263

Access Statistics for this paper

More papers in CEPR Discussion Papers from C.E.P.R. Discussion Papers Centre for Economic Policy Research, 33 Great Sutton Street, London EC1V 0DX.
Bibliographic data for series maintained by ().