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Advanced Research Forum in Economics 177,2022
Date:2022-04-15

Theme:Public goods provision in a network formation game

Lecturer:Simin He, School of Economics, Shanghai University of Finance and Economics

Time:2022.04.21 14:00

SiteTecent meeting 833-166-491


  Abstract:

  We investigate how people coordinate on public goods provision in a network formation game. In this game, people first form network by bilateral linking, with or without a link cost, and then make contribution to public goods that benefit the people directedly linked in the network. Theoretically, there are two coordination patterns: splitting and alternation, and the latter is more efficient. Further, a higher link cost may help achieve alternation via a smaller network, which can result in higher efficiency. We vary the link cost in the laboratory experiment, and find that people dominantly converge to splitting instead of alternation, and although they tend to build smaller networks when the link cost increases, they fail to alternate even in the two-player network.


  Introduction to the lecturer:

  Simin He, PhD supervisor of School of Economics, Shanghai University of Finance and Economics, received his PhD in Economics from University of Amsterdam. His research fields are behavioral economics and experimental economics. His achievements have been published in MS, JET, GEB and other internationally renowned journals. He presided over the Outstanding Youth Program and Youth Program of National Natural Science Foundation of China; He was selected as Shanghai Pujiang Scholar and Chenguang Scholar.