Mantovani, Marco; Kirchsteiger, Georg; Mauleon, Ana; … - Fondazione ENI Enrico Mattei (FEEM) - 2011
Pairwise stability (Jackson and Wolinsky, 1996) is the standard stability concept in network formation. It assumes … 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. …