Endogenous network formation in local public goods: An experimental analysis

• 成果类型: Article
• 署名作者: Chen, Ying; Lane, Tom; Mcdonald, Stuart
• 署名单位: University of Nottingham Ningbo China; Newcastle University - UK
• 刊物名称: GAMES AND ECONOMIC BEHAVIOR
• ISSN/ISSBN: 0899-8256
• DOI: 10.1016/j.geb.2024.10.004
• 发表日期: 2025
• 页码: 198-214
• 关键词: Local public goods; network formation; experiment; Heterogeneity

摘要

We experimentally explore public good production levels and the endogenous formation of network structures to facilitate output sharing among agents with heterogeneous production costs and consumption valuations. Results corroborate the key theoretical insights of Kinateder and Merlino (2017) characterizing how agents form core-periphery networks. However, subjects often produce more and form denser networks than predicted, which sometimes reduces efficiency. There is some tendency for behaviour to converge towards the theoretical equilibrium over repeated play. Our results help us understand the emergence of the law of the few in real-world networks, and suggest it is driven by endogenous sorting of heterogeneous agents.