Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/53326 
Year of Publication: 
2011
Series/Report no.: 
Nota di Lavoro No. 45.2011
Publisher: 
Fondazione Eni Enrico Mattei (FEEM), Milano
Abstract: 
Pairwise stability (Jackson and Wolinsky, 1996) is the standard stability concept in network formation. It assumes myopic behavior of the agents in the sense that they do not forecast how others might react to their actions. Assuming that agents are farsighted, related stability concepts have been proposed. We design a simple network formation experiment to test these theories. Our results provide support for farsighted stability and strongly reject the idea of myopic behavior.
Subjects: 
Network Formation
Experiment
Myopic and Farsighted Stability
JEL: 
D85
C91
C92
Document Type: 
Working Paper

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