Positional concerns and social network structure: An experiment

B-Tier
Journal: European Economic Review
Year: 2020
Volume: 129
Issue: C

Score contribution per author:

0.670 = (α=2.01 / 3 authors) × 1.0x B-tier

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

Abstract

We experimentally study the positional concerns of individuals embedded in social networks. In the game, individuals compete for positional advantage with their direct neighbors by purchasing a positional good. The Nash equilibrium consumption is determined by the Katz-Bonacich centrality of the individual's network position, while the efficient outcome requires a lower consumption level. For most network positions, the gameplay converged to the Nash equilibrium, except for local centers that consumed less of the positional good than the Nash prediction. Despite this, the consumption of the positional good increased in the individual's centrality. The evolution of the gameplay was explained by the myopic best-response dynamics model.

Technical Details

RePEc Handle
repec:eee:eecrev:v:129:y:2020:i:c:s0014292120301781
Journal Field
General
Author Count
3
Added to Database
2026-01-24