Growing stars: A laboratory analysis of network formation

B-Tier
Journal: Journal of Economic Behavior and Organization
Year: 2015
Volume: 117
Issue: C
Pages: 380-394

Authors (2)

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Efficient information dispersion occurs with star networks, where small numbers of agents gather information for distribution to larger groups. Previous studies have shown that ex ante heterogeneity in payoff incentives among agents is sufficient for reliable star formation (Goeree et al., 2009). Using laboratory experiments, we show stars reliably emerge among ex ante homogeneous agents under specific institutional environments. Our results help to explain why star networks emerge frequently among homogeneous groups, particularly rural farming communities (Conley and Udry, 2010). Our findings have implications for developing countries where it is crucial to create mechanisms to promote efficient information sharing.

Technical Details

RePEc Handle
repec:eee:jeborg:v:117:y:2015:i:c:p:380-394
Journal Field
Theory
Author Count
2
Added to Database
2026-02-02