Nudging Cooperation in Networks

We investigate the development of cooperative behavior in networks over time. In our controlled laboratory experiment, subjects can cooperate by sending costly messages that contain valuable information for the receiver or other subjects in the network. Any message sent can increase the chance that subjects find the information they are looking for and consequently their profit. We find that cooperation emerges spontaneously and remains stable over time. In an additional treatment, we provide a non-binding suggestion about who to contact at the beginning of the experiment. We find that subjects partially follow our recommendation, and this increases their own and others’ profit. Despite the removal of suggestions, subjects build long-lasting relationships with the suggested contacts.