We develop a model of social preferences for network games and study its predictions in a local public goods game with … a property of the network structure: neighborhood nestedness. This means that equilibrium selection succeeds in small …, tightly connected structures but also in very centralized networks. It fails, in contrast, in loosely connected local …

We introduce a model of strategic experimentation on social networks where forwardlooking agents learn from their own … own experimentation, so total information decreases with network density; we determine density thresholds below which … agents asymptotically learn the state. In contrast, agent welfare is single-peaked in network density, and achieves a second …

Field studies of networks have uncovered a preference to befriend people we perceive as similar according to some … dimensions of our identity (“homophily”). Lab studies of network formation games have found that adherence to social norms of … reciprocity and inequity aversion are also drivers of network choices. No study so far has attempted to investigate the role of …

Theoretical models on network formation focus mostly on the stability and efficiency of equilibria, but they cannot … deliver an understanding of why specific equilibrium networks are selected or whether they are all actually reachable from any … starting network. To study factors affecting equilibrium selection, we designed a network formation experiment with multiple …

The paper analyzes a dynamic model of rational strategic learning in a network. It complements existing literature by … network. We show that the delay in information transmission caused by incomplete network structures may induce players to … increase own experimentation efforts. As a consequence a complete network can fail to be optimal even if there are no costs for …

networks. We varied the network structure, the relative influence of the opponent, and the heterogeneity of the nodes' initial …

This paper analyses a simultaneous game of network formation and information acquisition where the benefit structure is … such that the benefit that an agent derives from the network she is located in depends on the maximum information that … someone in her neighbourhood, including herself, acquires. It turns out that in equilibrium star network emerges as the unique …

network structure and we examine equilibrium selection. Specifically, actions are either strategic substitutes or strategic … complements, and participants have either complete or incomplete information about the structure of a random network. Since … networks, such as connectivity, clustering, and the degree of the players, help to predict informed behavior in the lab. People …

We experimentally study the emergence of networks under a known external threat. To be more specific, we deal with the … question if subjects in the role of a strategic Designer are able to form safe and efficient networks while facing a strategic … Adversary who is going to attack their networks. This investigation relates theoretical predictions by Dziubinski and Goyal …