Restricting the benefit flow from neighbors

Siegfried K. Berninghaus (), Marion Ott and Bodo Vogt ()
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Siegfried K. Berninghaus: Universität Karlsruhe, Postal: RZ Zirkel 2 D-76128 Karlsruhe
Bodo Vogt: Universität Magdeburg, Postal: Universitätsplatz 2 D-39106 Magdeburg

No 04-38, Sonderforschungsbereich 504 Publications from Sonderforschungsbereich 504, Universität Mannheim, Sonderforschungsbereich 504, University of Mannheim

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.

Pages: 22 pages
Date: 2004-11-11
Note: Financial support from the Deutsche Forschungsgemeinschaft, SFB 504, at the University of Mannheim, is gratefully acknowledged.
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