How Do People Learn by Listening to Others? Experimental Evidence from Thailand
AbstractThis paper presents experimental evidence about how individuals learn from information that comes from inside versus outside their ethnic group. In the experiment, Thai subjects observed information that came from Americans and other Thais that they could use to help them answer a series of questions. Two main findings emerge. First, subjects display overconfidence in their own opinions and place too low a value on the information that they observe. Second, conditional on this overconfidence, subjects weigh American information relative to Thai information in a nearly optimal way. The data also indicates that subjects appear to understand that outside information has extra value because people from different groups know different things and so have an opportunity to learn from each other.
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Bibliographic InfoPaper provided by EconWPA in its series Experimental with number 0512006.
Length: 59 pages
Date of creation: 16 Dec 2005
Date of revision:
Note: Type of Document - pdf; pages: 59. 44 double-spaced pages text, 15 pages experimental instructions and tables
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laboratory experiment; economic development; Bayesian updating; behavioral economics; learning;
Find related papers by JEL classification:
- C11 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Bayesian Analysis: General
- C53 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Forecasting and Prediction Models; Simulation Methods
- C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
- D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search, Learning, and Information
- O10 - Economic Development, Technological Change, and Growth - - Economic Development - - - General
- Q16 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - R&D; Agricultural Technology; Biofuels; Agricultural Extension Services
This paper has been announced in the following NEP Reports:
- NEP-ALL-2005-12-20 (All new papers)
- NEP-CBE-2005-12-20 (Cognitive & Behavioural Economics)
- NEP-EVO-2005-12-20 (Evolutionary Economics)
- NEP-EXP-2005-12-20 (Experimental Economics)
- NEP-SOC-2005-12-20 (Social Norms & Social Capital)
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