Superstars need social benefits : an experiment on network formation
Schram, Arthur (University of Amsterdam)
Van Leeuwen, B. (University of Amsterdam)
Offerman, Theo (University of Amsterdam)
Universitat Autònoma de Barcelona.
Departament d'Empresa
Imprint: |
Universitat Autònoma de Barcelona. Departament d'Economia de l'Empresa 2013 |
Description: |
49 p. |
Abstract: |
We investigate contributions to the provision of public goods on a network when efficient provision requires the formation of a star network. We provide a theoretical analysis and study behavior is a controlled laboratory experiment. In a 2x2 design, we examine the effects of group size and the presence of (social) benefits for incoming links. We find that social benefits are highly important. They facilitate convergence to equilibrium networks and enhance the stability and efficiency of the outcome. Moreover, in large groups social benefits encourage the formation of superstars: star networks in which the core contributes more than expected in the stage-game equilibrium. We show that this result is predicted by a repeated game equilibrium. |
Rights: |
Aquest document està subjecte a una llicència d'ús Creative Commons. Es permet la reproducció total o parcial, la distribució, i la comunicació pública de l'obra, sempre que no sigui amb finalitats comercials, i sempre que es reconegui l'autoria de l'obra original. No es permet la creació d'obres derivades. |
Language: |
Anglès |
Series: |
Departament d'Economia de l'Empresa. Documents de treball |
Series: |
Document de treball (Universitat Autònoma de Barcelona. Departament d'Economia de l'Empresa) ; 13/6 |
Document: |
Working paper |
Subject: |
Béns públics ;
Anàlisi de xarxes (Planificació) |
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Research literature >
Working papers >
Department of Business. Working papers
Record created 2014-03-16, last modified 2024-05-25