Falk, Armin; Kosfeld, Michael - 2021
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 gametheoretic basis for our experiment is the model of Bala and … the 1-way flow model but fails largely in the 2-way flow model. We observe a strong learning dynamic in the 1-way flow …