BEHAVIORAL PATTERNS IN SOCIAL NETWORKS |
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| Authors: | Anna Conte Daniela T Di Cagno Emanuela Sciubba |
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| Institution: | 1. +44 20 7911 5000, ext. 66593+44 20 7911 5839;2. Senior Lecturer in Quantitative Methods, Max Planck Institute of Economics, Jena, Germany;3. EQM Department, University of Westminster, London NW1 5LS, UK;4. +39 06 8522 5744+39 06 8522 5949;5. Professor of Economics, Department of Economics and Finance, LUISS University, Rome, Italy;6. +44 20 7631 6450+44 20 7361 6416;7. Senior Lecturer in Economics, Birkbeck, University of London, London WC1E 7HX, UK |
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| Abstract: | In this article, we focus on the analysis of individual decision‐making for the formation of social networks, using experimentally generated data. We analyze the determinants of the individual demand for links under the assumption of agents' static expectations and identify patterns of behavior that correspond to three specific objectives: players propose links so as to maximize expected profits (myopic best response strategy); players attempt to establish the largest number of direct links (reciprocator strategy); and players maximize expected profits per direct link (opportunistic strategy). These strategies explain approximately 74% of the observed choices. We demonstrate that they are deliberately adopted and, by means of a finite mixture model, well identified and separated in our sample. (JEL C33, C35, C90, D85) |
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