LABORATORY EXPERIMENTS OF NETWORK FORMATION AND ADAPTIVITY-CONSCIOUS BEHAVIORAL ANALYSIS BASED ON CORRELATED EQUILIBRIUM

Abstract

This paper conducts a laboratory experiments using human subjects of network formation, and formation of periphery-sponsored star networks are observed. In the network formation process, multiple replacements of the central players of the peripheral-sponsored star networks are observed as like some laboratory experiments conducted in related works. The related work of the network formation interprets such irrational decision as a result of implicit agreement of the subjects, and they construct a behavioral model based on concepts of correlated equilibrium. However, the behavioral model ignores a part of network formation process, therefore it can explain only several aspects of the subjects' behavior. This paper modifies the behavioral model based on the correlated equilibrium focused on adaptive decision process.