Restricting the benefit flow from neighbors: experiments on network formation

Siegfried Berninghaus, Marion Ott and Bodo Vogt

No 04-38, Papers from Sonderforschungsbreich 504

Abstract: In an experimental framework on network formation inspired by the two-way information flow model of Bala and Goyal (2000), we observe that many groups participating in the experiment reach the strict Nash network resp. come very close to this network. Compared to the results of previous network experiments this is new. Among other things, the role of inequity aversion in explaining our experimental results is discussed.

Keywords: Network formation; Nash networks; network experiment (search for similar items in EconPapers)
JEL-codes: C72 C78 C92 (search for similar items in EconPapers)
Date: 2004
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