Individual choices in dynamic networks: an experiment on social preferences

Game-theoretic models of network formation typically assume that people create relations so as to maximize their own outcome in the network. Recent experiments on network formation suggest that the assumption of self-interest might be unwarranted and that social preferences, such as altruism and ine...

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Main Authors: van Dolder, Dennie, Buskens, Vincent
Format: Article
Published: Public Library of Science 2014
Online Access:https://eprints.nottingham.ac.uk/30842/
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author van Dolder, Dennie
Buskens, Vincent
author_facet van Dolder, Dennie
Buskens, Vincent
author_sort van Dolder, Dennie
building Nottingham Research Data Repository
collection Online Access
description Game-theoretic models of network formation typically assume that people create relations so as to maximize their own outcome in the network. Recent experiments on network formation suggest that the assumption of self-interest might be unwarranted and that social preferences, such as altruism and inequality aversion, play a role in the formation of social networks. We developed an experiment to systematically investigate whether people show preferences for outcomes of others during network formation. We find that such preferences play a role when network decisions degenerate to simple two-person decision tasks. In more complex environments, however, we find little evidence for social preferences as a significant decision criterion. Furthermore, we find some evidence for farsighted behavior in network formation.
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spelling nottingham-308422020-05-04T16:46:41Z https://eprints.nottingham.ac.uk/30842/ Individual choices in dynamic networks: an experiment on social preferences van Dolder, Dennie Buskens, Vincent Game-theoretic models of network formation typically assume that people create relations so as to maximize their own outcome in the network. Recent experiments on network formation suggest that the assumption of self-interest might be unwarranted and that social preferences, such as altruism and inequality aversion, play a role in the formation of social networks. We developed an experiment to systematically investigate whether people show preferences for outcomes of others during network formation. We find that such preferences play a role when network decisions degenerate to simple two-person decision tasks. In more complex environments, however, we find little evidence for social preferences as a significant decision criterion. Furthermore, we find some evidence for farsighted behavior in network formation. Public Library of Science 2014-04-14 Article PeerReviewed van Dolder, Dennie and Buskens, Vincent (2014) Individual choices in dynamic networks: an experiment on social preferences. PLoS ONE, 9 (4). e92276. ISSN 1932-6203 http://journals.plos.org/plosone/article?id=10.1371/journal.pone.0092276 doi:10.1371/journal.pone.0092276 doi:10.1371/journal.pone.0092276
spellingShingle van Dolder, Dennie
Buskens, Vincent
Individual choices in dynamic networks: an experiment on social preferences
title Individual choices in dynamic networks: an experiment on social preferences
title_full Individual choices in dynamic networks: an experiment on social preferences
title_fullStr Individual choices in dynamic networks: an experiment on social preferences
title_full_unstemmed Individual choices in dynamic networks: an experiment on social preferences
title_short Individual choices in dynamic networks: an experiment on social preferences
title_sort individual choices in dynamic networks: an experiment on social preferences
url https://eprints.nottingham.ac.uk/30842/
https://eprints.nottingham.ac.uk/30842/
https://eprints.nottingham.ac.uk/30842/