In an experimental framework on network formation inspired by the two-way information flow model of Bala and Goyal (2000), we observe that many groups participating in the experiment reach the strict Nash network resp. come very close to this network. Compared to the results of previous network...

Inspired by the theoretical results on network formation by Bala and Goyal (2000) and experimental evidence by Plott and Callander (2002) and Falk and Kosfeld (2003) we design network formation experiments in discrete and continuous time. Particularly in the continuous time experiment, we...