@article{Brangewitz:258012,
      recid = {258012},
      author = {Sonja Brangewitz  and Behnud Mir Djawadi  and Angelika  Endres  and Britta Hoyer},
      title = {Network Formation and Disruption - An Experiment - Are  Efficient Networks too Complex?},
      address = {2017-06-23},
      number = {843-2017-1280},
      series = {30.2017},
      pages = {23},
      year = {2017},
      abstract = {We experimentally study the emergence of networks under a  known external threat. To be more specific, we deal with  the question if subjects in the role of a strategic  Designer are able to form safe and efficient networks while  facing a strategic Adversary who is going to attack their  networks. This investigation relates theoretical  predictions by Dziubinski and Goyal (2013) to actual  observed behaviour. Varying the costs for protecting nodes,  we designed and tested two treatments with different  predictions for the equilibrium network. Furthermore, the  influence of the subjects' farsightedness on their  decision-making process was elicited and analysed. We find  that while subjects are able to build safe networks in both  treatments, equilibrium networks are only built in one of  the two treatments. In the other treatment, predominantly  safe networks are built but they are not efficient.  Additionally, we find that farsightedness -as measured in  our experiment- has no influence on whether subjects are  able to build safe or efficient networks.},
      url = {http://ageconsearch.umn.edu/record/258012},
      doi = {https://doi.org/10.22004/ag.econ.258012},
}