Behavioral experiments in networked trade

We report on an extensive series of highly controlled human subject experiments in networked trade. Our point of departure is a simple and well-studied bipartite network exchange model, for which previous work has established a detailed equilibrium theory relating wealth to network topology. A notable feature of this theory is its prediction that there may be significant local variation in equilibrium wealths and prices purely as a result of structural asymmetries in the network. Our experiments mix recent lines of thought from algorithmic game theory, behavioral economics and social network theory, and are among the first and largest behavioral economics experiments on network effects conducted to date. They continue a line of human subject experiments on networked games and optimization allowing only local interactions. Categories and Subject Descriptors: J.4 [Social and Behavioral Sciences]: Economics General Terms: Economics

• Type: Journal
• Year: 2008
• Where: SIGECOM
• Authors: J. Stephen Judd, Michael Kearns
• Keywords: Behavioral Economics, Controlled Human Subject, ECommerce, SIGECOM 2008, Well-studied Bipartite Network