Next Article in Journal
A Stochastic Maximum Principle for Markov Chains of Mean-Field Type
Next Article in Special Issue
Determinants of Equilibrium Selection in Network Formation: An Experiment
Previous Article in Journal
Determinants of Borrowers’ Default in P2P Lending under Consideration of the Loan Risk Class
Article Menu

Export Article

Open AccessArticle
Games 2018, 9(4), 83; https://doi.org/10.3390/g9040083

Homophily and Social Norms in Experimental Network Formation Games

1
Department of Economics, Simon Fraser University, 8888 University Drive, Burnaby, BC V5A 1S6, Canada
2
PPE Program, University of Pennsylvania, 313 Claudia Cohen Hall, 249 South 36th Street, Philadelphia, PA 19104, USA
*
Author to whom correspondence should be addressed.
Received: 21 September 2018 / Revised: 11 October 2018 / Accepted: 16 October 2018 / Published: 19 October 2018
(This article belongs to the Special Issue Games on Networks: From Theory to Experiments)
Full-Text   |   PDF [410 KB, uploaded 19 October 2018]   |  

Abstract

Field studies of networks have uncovered a preference to befriend people we perceive as similar according to some dimensions of our identity (“homophily”). Lab studies of network formation games have found that adherence to social norms of reciprocity and inequity aversion are also drivers of network choices. No study so far has attempted to investigate the role of both homophily and social norms in a controlled environment. At the beginning of our experiment, each player fills in a personal profile. Each player then views the profile of all other players and expresses a degree of perceived similarity between his/her profile and the profile of the other player. At this point, a repeated network formation game ensues. We find that: (1) potential homophily considerations triggered by the profile rating task did not measurably change the players’ behavior compared to the baseline; (2) reciprocity plays a significant role in the formulation of the players’ strategies, in particular lowering the probability that the player naively best responds to the network observed in the previous period. We speculate that reciprocation of past choices might be a more “available” aid in strategy-formulation than considerations related to the similarity of the other players. View Full-Text
Keywords: networks; identity; heterogeneity; homophily; reciprocity; inequity networks; identity; heterogeneity; homophily; reciprocity; inequity
Figures

Figure 1

This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited (CC BY 4.0).
SciFeed

Share & Cite This Article

MDPI and ACS Style

Arifovic, J.; Danese, G. Homophily and Social Norms in Experimental Network Formation Games. Games 2018, 9, 83.

Show more citation formats Show less citations formats

Note that from the first issue of 2016, MDPI journals use article numbers instead of page numbers. See further details here.

Related Articles

Article Metrics

Article Access Statistics

1

Comments

[Return to top]
Games EISSN 2073-4336 Published by MDPI AG, Basel, Switzerland RSS E-Mail Table of Contents Alert
Back to Top