This paper reports the results of a laboratory experiment on network formation among heterogeneous agents. The … experimental design extends the basic Bala-Goyal (2000) model of network formation with decay and two-way flow of benefits by … network has a "star" structure. We find that with homogeneous agents, equilibrium predictions fail completely. In contrast …

This paper reports results from a laboratory experiment on network formation among heterogeneous agents. The … experimental design extends the Bala-Goyal (2000) model of network formation with decay and two-way flow of benefits by allowing … private information. In all treatments, the (efficient) equilibrium network has a "star" structure. With homogeneous agents …

, incomplete and irregular network can be stable, with firms observing high variance signals acting as "critical nodes". Finally …, when signals are correlated, the empty network may not be pairwise stable when the number of firms and/or correlation are …

neighbors in the social network prior to the vote. We show theoretically and empirically that communication can undermine … network. If some voters have distinctly larger audiences than others, their neighbors should not follow their vote …-statics and, more generally, for the importance of the network structure for voting behavior. …

We develop a dynamic framework of strategic information transmission through cheap talk in a social network. Privately … their neighbors in the network. We first characterize myopic (best response) equilibria as well as fully informative myopic … dominate farsighted equilibria, in particular if a social planner has designed the network optimally. …

differently characterized in terms of how cooperation evolves, depending on the benefit-to-cost ratio, the network-node degree …