Date of This Version
June 2011
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.
Recommended Citation
Mantovani, Marco; Kirchsteiger, Georg; Mauleon, Ana; and Vannetelbosch, Vincent, "Myopic or Farsighted? An Experiment on Network Formation" (June 14, 2011). Fondazione Eni Enrico Mattei Working Papers. Paper 596.
https://services.bepress.com/feem/paper596
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