Myopic or Farsighted? An Experiment on Network Formation

Marco Mantovani, Georg Kirchsteiger, Ana Mauleon and Vincent Vannetelbosch

No 2011.45, Working Papers from Fondazione Eni Enrico Mattei

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: Network Formation; Experiment; Myopic and Farsighted Stability (search for similar items in EconPapers)
JEL-codes: C91 C92 D85 (search for similar items in EconPapers)
Date: 2011-06
References: Add references at CitEc
Citations: View citations in EconPapers (11)

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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)
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