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Does the network structure in which economic agents interact affect their ability to coordinate of high payoff investments in environments with multiple equilibria? We conduct experiments with paid human subjects in an effort to resolve this important question. Our experiment tests whether two...
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This appendix provides proofs and the entire set of data used in Corbae and Duffy (2006)` ``Experiments with Network Formation''. In particular we show that for the environment laid out in that paper` a marriage network is not only the ex-ante efficient network` but also stable in the sense of...
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We examine how groups of agents form trading networks in the presence of idiosyncratic risk and the possibility of contagion. Specifically, four agents play a two-stage finite repeated game. In the first stage, the network structure is endogenously determined through a non-cooperative proposal...
Persistent link: https://www.econbiz.de/10005413721
We examine how groups of agents form trading networks in the presence of idiosyncratic risk and the possibility of contagion. Specifically, in our model, four agents play a two-stage, finitely repeated game. In the first stage, the network structure is endogenously determined in a noncooperative...
Persistent link: https://www.econbiz.de/10005696191