Ever Changing “stars” – Network Experiments in Continuous Time–

Inspired by the 2-way-information flow model on network formation by Bala and Goyal (2000) and strategy adaptation experiments of players in (almost) continuous time (e.g., Berninghaus, Ehrhart and Keser 1999) we design network formation experiments in which almost all groups not only reach a strict Nash network but also switch to several other strict Nash networks and stay with each of them for some time. In our framework strict Nash networks are periphery sponsored stars which, therefore, prove to be a good predictor for network experiments. JEL classification: C72, C78, C92