Skip to main content

Contributions of Experimental Research to Network Governance

  • Chapter
  • First Online:
Networked Governance

Abstract

The empirically oriented research tradition of network governance has not yet made use of laboratory experiments. Nevertheless, experimental investigation can complement a systematic analysis in two central aspects. On the one hand, experimental tools have been used to study network formation. On the other hand, experimental research has created knowledge about power distributions in networks. A profound understanding of how specific networks are formed and how network structures influence power relations has the potential to improve systematic examination in the field. This chapter relates the aforementioned literature to governance networks and lays the groundwork for potential future contributions of experimental research to network governance.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 89.00
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 119.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info
Hardcover Book
USD 119.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

Notes

  1. 1.

    Prominent contributions include “present bias” (Laibson 1997; Strotz 1955), “prospect theory” (Kahneman and Tversky 1979), or “inequality aversion” (Fehr and Schmidt 1999).

  2. 2.

    For overviews of experimental research in the social sciences, see, for example, Druckman et al. (2011), Fréchette and Schotter (2015), Kagel and Roth (1995), Kittel et al. (2012), Plott and Smith (2008) and Webster and Sell (2014).

  3. 3.

    For an exception, see, for example, Gluesing et al. (2016).

  4. 4.

    The benefits depend, for example, on the network structure, which will be discussed in the following section. As no bargaining takes place here, the power aspect in network-formation models is typically neglected. However, models include externalities of connections affecting other network members. Also, there are some experiments, which we will discuss later, in which the connection yields no direct payoff. In this case, the link allows the actors to play a game to create payoffs.

  5. 5.

    Networks are described in different ways in the fields discussed in this chapter, for example, by reference to the number of nodes, the number of links, or the overall pattern (such as a line or a kite). At the risk of generating some ambivalence in terminology, we stick to the labels used by the original authors.

  6. 6.

    These variations parallel the tradeoff between external costs and decision costs introduced by Buchanan and Tullock (1962).

  7. 7.

    Note that in this model agents do not base their decision on reciprocity but only on their own rationality and that of other agents.

  8. 8.

    Bargaining does not imply the division of some kind of profit (points, money) per se. Also, tasks or responsibilities can be divided between organizations.

References

  • Aumann, R., & Myerson, R. (1988). Endogenous formation of links between players and coalitions: An application of the shapely value. In A. Roth (Ed.), The shapely value: Essays in honor of Lloyd S. Shapley (pp. 175–191). Cambridge: Cambridge University Press.

    Chapter  Google Scholar 

  • Bala, V., & Goyal, S. (2000). A noncooperative model of network formation. Econometrica, 68(5), 1181–1229.

    Article  Google Scholar 

  • Berg, J., Dickhaut, J., & McCabe, K. (1995). Trust, reciprocity, and social history. Games and Economic Behavior, 10(1), 122–142.

    Article  Google Scholar 

  • Bevir, M. (2012). Governance: A very short introduction. Oxford: Oxford University Press.

    Book  Google Scholar 

  • Blau, P. M. (1964). Exchange and power in social life. New York: John Wiley and Sons Inc.

    Google Scholar 

  • Bogason, P., & Zølner, M. (2007). Methods for network governance research: An introduction. In P. Bogason & M. Zølner (Eds.), Methods in democratic network governance (pp. 1–20). Basingstoke: Palgrave MacMillan.

    Chapter  Google Scholar 

  • Borch, C., & Willer, D. (2006). Power, embedded games, and coalition formation. The Journal of Mathematical Sociology, 30(2), 77–111.

    Article  Google Scholar 

  • Brown, M., Falk, A., & Fehr, E. (2004). Relational contracts and the nature of market interactions. Econometrica, 72(3), 747–780.

    Article  Google Scholar 

  • Buchanan, J. M., & Tullock, G. (1962). The calculus of consent: Logical foundations of constitutional democracy. Ann Arbor: University of Michigan Press.

    Book  Google Scholar 

  • Burger, M. J., & Buskens, V. (2009). Social context and network formation: An experimental study. Social Networks, 31(1), 63–75.

    Article  Google Scholar 

  • Buskens, V., Raub, W., & van der Veer, J. (2010). Trust in triads: An experimental study. Social Networks, 32(4), 301–312.

    Article  Google Scholar 

  • Buskens, V., Corten, R., & Raub, W. (2014). Social networks. In N. Braun & N. J. Saam (Eds.), Handbuch Modellbildung und Simulation in den Sozialwissenschaften (pp. 663–687). Wiesbaden: Springer.

    Google Scholar 

  • Carrillo, J. D., & Gaduh, A. (2012). The strategic formation of networks: Experimental evidence. London: Centre for Economic Policy Research.

    Google Scholar 

  • Cheshire, C., Gerbasi, A., & Cook, K. S. (2010). Trust and transitions in modes of exchange. Social Psychology Quarterly, 73(2), 176–195.

    Google Scholar 

  • Chwe, M. S.-Y. (1994). Farsighted coalitional stability. Journal of Economic Theory, 63(2), 299–325.

    Article  Google Scholar 

  • Cook, K. S., & Emerson, R. M. (1984). Exchange networks and the analysis of complex oranizations. In S. B. Bacharach & E. J. Lawler (Eds.), Research in the sociology of organizations (3rd ed., pp. 1–30). Greenwich: JAI.

    Google Scholar 

  • Cook, K. S., & Yamagishi, T. (1992). Power in exchange networks: A power-dependence formulation. Social Networks, 14(3), 245–265.

    Article  Google Scholar 

  • Cook, K. S., Emerson, R. M., Gillmore, M. R., & Yamagishi, T. (1983). The distribution of power in exchange networks – Theory and experimental results. American Journal of Sociology, 89(2), 275–305.

    Article  Google Scholar 

  • Cook, K. S., Cheshire, C., Rice, E. R. W., & Nakagawa, S. (2013). Social exchange theory. In J. DeLamater & A. Ward (Eds.), Handbook of social psychology (2nd ed., pp. 61–88). Dordrecht: Springer.

    Google Scholar 

  • Corbae, D., & Duffy, J. (2008). Experiments with network formation. Games and Economic Behavior, 64(1), 81–120.

    Article  Google Scholar 

  • Corten, R., & Buskens, V. (2010). Co-evolution of conventions and networks: An experimental study. Social Networks, 32(1), 4–15.

    Article  Google Scholar 

  • Deck, C., & Johnson, C. (2004). Link bidding in laboratory networks. Review of Economic Design, 8(4), 359–372.

    Article  Google Scholar 

  • Druckman, J. N., Green, D. P., Kuklinski, J. H., & Lupia, A. (2011). Cambridge handbook of experimental political science. Cambridge: Cambridge University Press.

    Book  Google Scholar 

  • Emerson, R. M. (1972a). Exchange theory, Part I: A psychological basis for social exchange. In J. Berger, M. Zelditch, & B. Anderson (Eds.), Sociological theories in progress (Vol. 2, pp. 38–57). Boston: Houghton Mifflin.

    Google Scholar 

  • Emerson, R. M. (1972b). Exchange theory, Part II: Exchange relations and networks. In J. Berger, M. Zelditch, & B. Anderson (Eds.), Sociological theories in progress (Vol. 2, pp. 58–87). Boston: Houghton Mifflin.

    Google Scholar 

  • Erdös, P., & Rényi, A. (1959). On random graphs, I. Publicationes Mathematicae, 6, 290–297.

    Google Scholar 

  • Erdös, P., & Rényi, A. (1960). On the evolution of random graphs. Publication of the Mathematical Institute of the Hungarian Academy of Sciences, 5, 17–61.

    Google Scholar 

  • Erdös, P., & Rényi, A. (1961). On the strength of connectedness of a random graph. Acta Mathematica Hungarica, 12(1–2), 261–267.

    Google Scholar 

  • Fehr, E., & Schmidt, K. M. (1999). A theory of fairness, competition, and cooperation. Quarterly Journal of Economics, 114(3), 817–868.

    Article  Google Scholar 

  • Fréchette, G. R., & Schotter, A. (2015). Handbook of experimental economic methodology. Oxford: Oxford University Press.

    Book  Google Scholar 

  • Frey, V., Buskens, V., & Raub, W. (2015). Embedding trust: A game-theoretic model for investments in and returns on network embeddedness. The Journal of Mathematical Sociology, 39(1), 39–72.

    Article  Google Scholar 

  • Friedman, M. (1953). Essays in positive economics. Chicago: University of Chicago Press.

    Google Scholar 

  • Mayntz, R. (2016). International institutions of financial market governance – A case of network governance? In B. Hollstein, W. Matiaske, & K.-U. Schnapp (Eds.), Networked governance. New research perspectives. Cham: Springer.

    Google Scholar 

  • Hauk, E., & Nagel, R. (2001). Choice of partners in multiple two-person prisoner’s Dilemma games an experimental study. Journal of Conflict Resolution, 45(6), 770–793.

    Article  Google Scholar 

  • Herings, P. J.-J., Mauleon, A., & Vannetelbosch, V. (2009). Farsightedly stable networks. Games and Economic Behavior, 67(2), 526–541.

    Article  Google Scholar 

  • Herings, P. J.-J., Mauleon, A., & Vannetelbosch, V. J. (2014). Stability of networks under level-K farsightedness. CORE Discussion Paper; 2014/32.

    Google Scholar 

  • Hertting, N. (2007). Mechanisms of governance network formation – A contextual rational choice perspective. In E. Sørensen & J. Torfing (Eds.), Theories of democratic network governance (pp. 43–60). Basingstoke: Palgrave MacMillan.

    Chapter  Google Scholar 

  • Homans, G. C. (1958). Social behavior as exchange. American Journal of Sociology, 63(6), 597–606.

    Article  Google Scholar 

  • Jackson, M. O., & Van den Nouweland, A. (2005). Strongly stable networks. Games and Economic Behavior, 51(2), 420–444.

    Article  Google Scholar 

  • Jackson, M. O., & Wolinsky, A. (1996). A strategic model of social and economic networks. Journal of Economic Theory, 71(1), 44–74.

    Article  Google Scholar 

  • Jones, C., Hesterly, W. S., & Borgatti, S. P. (1997). A general theory of network governance: Exchange conditions and social mechanisms. Academy of Management, 22(4), 911–945.

    Google Scholar 

  • Kagel, J. H., & Roth, A. E. (1995). The handbook of experimental economics. Princeton: Princeton University Press.

    Google Scholar 

  • Kahneman, D., & Tversky, A. (1979). Prospect theory: An analysis of decision under risk. Econometrica, 47(2), 263–292.

    Article  Google Scholar 

  • Kirchsteiger, G., Mantovani, M., Mauleon, A., & Vannetelbosch, V. (2013). Limited farsightedness in network formation. Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).

    Google Scholar 

  • Kittel, B., Luhan, W. J., & Morton, R. B. (2012). Experimental political science: Principles and practices. New York: Palgrave MacMillan.

    Book  Google Scholar 

  • Kosfeld, M. (2004). Economic networks in the laboratory: A survey. Review of Network Economics, 3(1), 20–42.

    Article  Google Scholar 

  • Kugler, T., Kausel, E. E., & Kocher, M. G. (2012). Are groups more rational than individuals? A review of interactive decision making in groups. Wiley Interdisciplinary Reviews: Cognitive Science, 3(4), 471–482.

    Google Scholar 

  • Kuwabara, K. (2011). Cohesion, cooperation, and the value of doing things together: How economic exchange creates relational bonds. American Sociological Review, 76(4), 560–580.

    Article  Google Scholar 

  • Laibson, D. (1997). Golden eggs and hyperbolic discounting. The Quarterly Journal of Economics, 112(2), 443–477.

    Article  Google Scholar 

  • Lawler, E. J., Thye, S. R., & Yoon, J. (2000). Emotion and group cohesion in productive exchange. American Journal of Sociology, 106(3), 616–657.

    Article  Google Scholar 

  • Lawler, E. J., Thye, S. R., & Yoon, J. (2008). Social exchange and micro social order. American Sociological Review, 73(4), 519–542.

    Article  Google Scholar 

  • Lovaglia, M. J., Skvoretz, J., Willer, D., & Markovsky, B. (1995). Negotiated exchanges in social networks. Social Forces, 74(1), 123–155.

    Article  Google Scholar 

  • Markovsky, B., Willer, D., & Patton, T. (1988). Power relations in exchange networks. American Sociological Review, 53(2), 220–220.

    Article  Google Scholar 

  • Molm, L. D. (2007). Experiments on exchange relations and exchange networks in sociology. In M. Webster & J. Sell (Eds.), Laboratory experiments in the social sciences (pp. 379–406). London: Elsevier.

    Google Scholar 

  • Molm, L. D. (2010). The structure of reciprocity. Social Psychology Quarterly, 73(2), 119–131.

    Google Scholar 

  • Molm, L. D., Schaefer, D. R., & Collett, J. L. (2009). Fragile and resilient trust: Risk and uncertainty in negotiated and reciprocal exchange. Sociological Theory, 27(1), 1–32.

    Article  Google Scholar 

  • Molm, L. D., Melamed, D., & Whitham, M. M. (2013). Behavioral consequences of embeddedness: Effects of the underlying forms of exchange. Social Psychology Quarterly, 76(1), 73–97.

    Article  Google Scholar 

  • Page, F. H., Wooders, M. H., & Kamat, S. (2005). Networks and farsighted stability. Journal of Economic Theory, 120(2), 257–269.

    Article  Google Scholar 

  • Plott, C. R., & Smith, V. L. (2008). Handbook of experimental economics results (Vol. 1). Amsterdam: North-Holland.

    Google Scholar 

  • Raub, W., Frey, V., & Buskens, V. (2014). Strategic network formation, games on networks, and trust. Analyse and Kritik, 36(1), 135–153.

    Article  Google Scholar 

  • Riedl, A. & Ule, A. (2002). Exclusion and cooperation in social network experiments. Unpublished Paper, CREED, University.

    Google Scholar 

  • Roth, A. E. (2002). The economist as engineer: Game theory, experimentation, and computation as tools for design economics. Econometrica, 70(4), 1341–1378.

    Article  Google Scholar 

  • Simpson, B., & Macy, M. W. (2001). Collective action and power inequality: Coalitions in exchange networks. Social Psychology Quarterly, 64(1), 88–100.

    Article  Google Scholar 

  • Simpson, B., & Macy, M. W. (2004). Power, identity, and collective action in social exchange. Social Forces, 82(4), 1373–1409.

    Article  Google Scholar 

  • Simpson, B., & Willer, D. (2005). The structural embeddedness of collective goods: Connection and coalitions in exchange networks. Sociological Theory, 23(4), 386–407.

    Article  Google Scholar 

  • Skvoretz, J., & Willer, D. (1993). Exclusion and power: A test of four theories of power in exchange networks. American Sociological Review, 58(6), 801–818.

    Article  Google Scholar 

  • Smith, V. L. (1976). Experimental economics: Induced value theory. The American Economic Review, 66(2), 274–279.

    Google Scholar 

  • Sørensen, E., & Torfing, J. (2007). Introduction: Governance network research: Towards a second generation. In E. Sørensen & J. Torfing (Eds.), Theories of democratic network governance (pp. 1–21). Basingstoke: Palgrave MacMillan.

    Chapter  Google Scholar 

  • Strotz, R. H. (1955). Myopia and inconsistency in dynamic utility maximization. The Review of Economic Studies, 22(3), 165–180.

    Article  Google Scholar 

  • Teteryatnikova, M. (2015). Cautious farsighted stability in network formation games with stream of payoffs (Working paper). Vienna: University of Vienna.

    Google Scholar 

  • Teteryatnikova, M., & Tremewan, J. (2015). Stability in network formation games with streams of payoffs: An experimental study (Working paper). Vienna: University of Vienna.

    Google Scholar 

  • Tsvetkova, M., & Buskens, V. (2013). Coordination on Egalitarian networks from asymmetric relations in a social game of chicken. Advances in Complex Systems, 16(1), 1350005.

    Article  Google Scholar 

  • Van Dolder, D., & Buskens, V. (2014). Individual choices in dynamic networks: An experiment on social preferences. PLoS One, 9(4), e92276.

    Article  Google Scholar 

  • Von Neumann, J., & Morgenstern, O. (1944). Game theory and economic behavior. Princeton: Princeton University.

    Google Scholar 

  • Walker, H. A., & Willer, D. (2014). Legitimizing collective action and countervailing power. Social Forces, 92(3), 1217–1239.

    Article  Google Scholar 

  • Watts, D. J., & Strogatz, S. H. (1998). Collective dynamics of ‘small-world’ networks. Nature, 393, 440–442.

    Article  Google Scholar 

  • Webster, M., & Sell, J. (2014). Laboratory experiments in the social sciences (2nd ed.). London: Elsevier.

    Google Scholar 

  • Willer, D., & Emanuelson, P. (2008). Testing ten theories. The Journal of Mathematical Sociology, 32(3), 165–203.

    Article  Google Scholar 

  • Willer, D., Van Assen, M. A. L. M., & Emanuelson, P. (2012). Analyzing large scale exchange networks. Social Networks, 34(2), 171–180.

    Article  Google Scholar 

  • Klijn, E.-H., & Koppenjan, J. F. M. (2012). Governance network theory: Past, present and future. Policy and Politics, 40(4), 587–606.

    Article  Google Scholar 

  • Gluesing, J., Riopelle, K., & Wasson, C. (2016). Environmental governance in multi-stakeholder contexts: An integrated methods set for examining decision-making. In B. Hollstein, W. Matiaske, & K.-U. Schnapp (Eds.), Networked governance. New research perspectives. Cham: Springer.

    Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Bernhard Kittel .

Editor information

Editors and Affiliations

Rights and permissions

Reprints and permissions

Copyright information

© 2017 Springer International Publishing AG

About this chapter

Cite this chapter

Schwaninger, M., Neuhofer, S., Kittel, B. (2017). Contributions of Experimental Research to Network Governance. In: Hollstein, B., Matiaske, W., Schnapp, KU. (eds) Networked Governance. Springer, Cham. https://doi.org/10.1007/978-3-319-50386-8_11

Download citation

  • DOI: https://doi.org/10.1007/978-3-319-50386-8_11

  • Published:

  • Publisher Name: Springer, Cham

  • Print ISBN: 978-3-319-50384-4

  • Online ISBN: 978-3-319-50386-8

  • eBook Packages: Social SciencesSocial Sciences (R0)

Publish with us

Policies and ethics