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Competition for status creates superstars: An experiment on public good provision and network formation

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  • Offerman, Theo
  • Schram, Arthur
  • Van Leeuwen, Boris
Abstract
We investigate a mechanism that facilitates the provision of public goods in a network formation game. We show how competition for status encourages a core player to realize efficiency gains for the entire group. In a laboratory experiment we systematically examine the effects of group size and status rents. The experimental results provide very clear support for a competition for status dynamic that predicts when, and if so which, repeated game equilibrium is reached. Two control treatments allow us to reject the possibility that the supergame effects we observe are driven by social motives.

Suggested Citation

  • Offerman, Theo & Schram, Arthur & Van Leeuwen, Boris, 2014. "Competition for status creates superstars: An experiment on public good provision and network formation," IAST Working Papers 14-16, Institute for Advanced Study in Toulouse (IAST).
    • Handle: RePEc:tse:iastwp:28902
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    Cited by:

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    3. Zhang, Yang & He, Longfei, 2021. "Theory and experiments on network games of public goods: inequality aversion and welfare preference," Journal of Economic Behavior & Organization, Elsevier, vol. 190(C), pages 326-347.
    4. Liza Charroin, 2016. "The effect of sequentiality and heterogeneity in network formation games," Working Papers halshs-01368067, HAL.
    5. Dong, Lu & Huang, Lingbo & Lien, Jaimie W. & Zheng, Jie, 2024. "How alliances form and conflict ensues," Games and Economic Behavior, Elsevier, vol. 146(C), pages 255-276.
    6. Atabek Atayev & Maarten Janssen, 2024. "Information Acquisition And Diffusion In Markets," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 65(2), pages 729-753, May.
    7. Ying Chen & Tom Lane & Stuart McDonald, 2023. "Endogenous Network Formation in Local Public Goods: An Experimental Analysis," Discussion Papers 2023-02, The Centre for Decision Research and Experimental Economics, School of Economics, University of Nottingham.
    8. Kinateder, Markus & Merlino, Luca Paolo, 2023. "Free riding in networks," European Economic Review, Elsevier, vol. 152(C).
    9. Aymanns, Christoph & Foerster, Jakob & Georg, Co-Pierre & Weber, Matthias, 2022. "Fake News in Social Networks," SocArXiv y4mkd, Center for Open Science.
    10. Choi, S. & Goyal, S. & Guo, F. & Moisan, F., 2024. "Experimental Evidence on Group Size Effects in Network Formation Games," Cambridge Working Papers in Economics 2417, Faculty of Economics, University of Cambridge.
    11. Brown, Christopher L., 2024. "Team production in endogenous networks," Journal of Economic Behavior & Organization, Elsevier, vol. 217(C), pages 560-580.
    12. Antinyan, Armenak & Horváth, Gergely & Jia, Mofei, 2020. "Curbing the consumption of positional goods: Behavioral interventions versus taxation," Journal of Economic Behavior & Organization, Elsevier, vol. 179(C), pages 1-21.
    13. Tambunlertchai, Kanittha & Pongkijvorasin, Sittidaj, 2021. "Regulatory stringency and behavior in a common pool resource game: Lab and field experiments," Journal of Asian Economics, Elsevier, vol. 74(C).

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    More about this item

    JEL classification:

    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods

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