We develop a dynamic network formation model that can explain the observed nestedness in real-world networks. Links are … identify the networks to which the network formation process converges and find that they are nested split graphs. We … by real-world networks. Using four different network datasets, we empirically test our model and show that it fits well …

dimensions of our identity (“homophily”). Lab studies of network formation games have found that adherence to social norms of … reciprocity and inequity aversion are also drivers of network choices. No study so far has attempted to investigate the role of … both homophily and social norms in a controlled environment. At the beginning of our experiment, each player fills in a …