Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/284277 
Year of Publication: 
2023
Series/Report no.: 
CeDEx Discussion Paper Series No. 2023-02
Publisher: 
The University of Nottingham, Centre for Decision Research and Experimental Economics (CeDEx), Nottingham
Abstract: 
We experimentally explore public good production levels, and the endogenous formation of network structures to facilitate output sharing, among agents with heterogeneous production costs or valuations. Results corroborate the key theoretical insights of Kinateder & Merlino (2017) characterizing how agents form core-periphery networks. However, subjects often produce more and form denser networks than predicted, which sometimes reduces efficiency. There is some tendency for behaviour to converge towards the theoretical equilibrium over repeated play. Our results help us understand the emergence of the "law of the few" in real-world networks, and suggest it is driven by endogenous sorting of heterogeneous agents.
Subjects: 
Local public goods
Network formation
Experiment
Heterogeneity
JEL: 
C91
D85
H41
Document Type: 
Working Paper

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.