2019
DOI: 10.1007/s00199-019-01200-z
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Myopic and farsighted stability in network formation games: an experimental study

Abstract: We test the performance of myopic and farsighted stability concepts in a network formation experiment with a stream of payoffs and relatively unstructured link formation process. A subtle treatment variation demonstrates clearly the power of myopic stability concepts in precisely identifying the set of the most stable networks. However, we also find support for the predictions of farsighted concepts of stability, especially those that assume players' pessimism about the eventual outcome of a deviation. This is… Show more

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Cited by 11 publications
(5 citation statements)
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“…Further, a recent study used behavioral lab experiments to consider myopic and farsighted stability in network formation games (Teteryatnikova and Tremewan 2020). The study finds evidence to support both types of stability behavior, but the results also indicate that the most stable networks are those predicted by myopic stability (such as the core).…”
Section: Discussionmentioning
confidence: 97%
“…Further, a recent study used behavioral lab experiments to consider myopic and farsighted stability in network formation games (Teteryatnikova and Tremewan 2020). The study finds evidence to support both types of stability behavior, but the results also indicate that the most stable networks are those predicted by myopic stability (such as the core).…”
Section: Discussionmentioning
confidence: 97%
“…4 Recent experiments provide evidence in favour of a mixed population consisting of both myopic and farsighted agents. See Kirchsteiger, Mantovani, Mauleon and Vannetelbosch (2016) and Teteryatnikova and Tremewan (2020).…”
Section: Introductionmentioning
confidence: 99%
“…Most of the players anticipate a number of reactions by the other players to the actions they take themselves. See also Teteryatnikova and Tremewan (2020). 3 A network is more farsightedly stable than another network if the set of farsighted defeating networks in the former is a proper subset of the set of farsighted defeating networks in the latter network.…”
mentioning
confidence: 99%