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dc.contributor.authorGoeree, Jacob K.en_US
dc.contributor.authorRiedl, Arnoen_US
dc.contributor.authorUle, Aljazen_US
dc.date.accessioned2006-01-16en_US
dc.date.accessioned2010-07-07T09:12:20Z-
dc.date.available2010-07-07T09:12:20Z-
dc.date.issued2005en_US
dc.identifier.urihttp://hdl.handle.net/10419/33508-
dc.description.abstractThis paper reports the results of a laboratory experiment on network formation among heterogeneous agents. The experimental design extends the basic Bala-Goyal (2000) model of network formation with decay and two-way flow of benefits by allowing for agents with lower linking costs or higher benefits to others. We consider treatments where agents' types are common knowledge and treatments where agents' types are private information. In all treatments, the (efficient) equilibrium network has a star structure. We find that with homogeneous agents, equilibrium predictions fail completely. In contrast, with heterogeneous agents stars frequently occur, often with the high-value or low-cost agent in the center. Stars are not borne but rather develop: in treatments with a high-value agent, the network's centrality, stability, and efficiency all increase over time. Our results suggest that agents' heterogeneity is a major determinant for the predominance of star-like structures in real-life social networks.en_US
dc.language.isoengen_US
dc.publisherIZA Bonnen_US
dc.relation.ispartofseriesIZA Discussion Papers 1754en_US
dc.subject.jelC72en_US
dc.subject.jelC91en_US
dc.subject.jelC92en_US
dc.subject.jelD01en_US
dc.subject.jelD85en_US
dc.subject.ddc330en_US
dc.subject.keywordnetwork formationen_US
dc.subject.keywordstarsen_US
dc.subject.keywordheterogeneityen_US
dc.subject.keywordlaboratory experimentsen_US
dc.subject.stwNetzwerken_US
dc.subject.stwSoziales Netzwerken_US
dc.subject.stwTesten_US
dc.subject.stwAsymmetrische Informationen_US
dc.subject.stwTheorieen_US
dc.titleIn search of stars: network formation among heterogeneous agentsen_US
dc.typeWorking Paperen_US
dc.identifier.ppn500644233en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungen-
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