Abstract We present an economic experiment on network formation, in which subjects can decide to form links to one another. Direct links are costly but being connected is valuable. The game-theoretic basis for our experiment is the model of Bala and Goyal (2000). They distinguish between two...

This paper provides a survey of recent experimental work in economics focusing on social and economic networks. The experiments consider networks of coordination and cooperation, buyer-seller networks, and network formation.

This paper provides a survey of recent experimental work in economics focusing on social and economic networks. The experiments consider networks of coordination and cooperation, buyer-seller networks, and network formation.