Superstars need social benefits : an experiment on network formation
Schram, Arthur
Van Leeuwen, B.
Offerman, Theo
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: L'accés als continguts d'aquest document queda condicionat a l'acceptació de les condicions d'ús establertes per la següent llicència Creative Commons: Creative Commons
Language: Anglès.
Series: Documents de treball
Series: Document de treball (Universitat Autònoma de Barcelona. Departament d'Economia de l'Empresa) ; 13/6
Document: workingPaper
Subject: Béns públics ; Anàlisi de xarxes (Planificació)

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49 p, 446.6 KB

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Research literature > Working papers

 Record created 2014-03-16, last modified 2018-10-18

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