Myopic or farsighted? An experiment on network formation

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.

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Year of publication:	2011
Authors:	Mantovani, Marco ; Kirchsteiger, Georg ; Mauleon, Ana ; Vannetelbosch, Vincent
Publisher:	Milano : Fondazione Eni Enrico Mattei (FEEM)
Subject:	Netzwerk \| Spieltheorie \| Network Formation \| Experiment \| Myopic and Farsighted Stability

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Series:	Nota di Lavoro ; 45.2011
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Working Paper
Language:	English
Other identifiers:	661242765 [GVK] hdl:10419/53326 [Handle]
Classification:	D85 - Network Formation ; C91 - Laboratory, Individual Behavior ; C92 - Laboratory; Group Behavior
Source:	EconStor

Persistent link: https://www.econbiz.de/10010279552