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How Do People Learn by Listening to Others? Experimental Evidence from Thailand

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Listed:
  • Andrew Healy

    (Loyola Marymount University)

Abstract

This 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.

Suggested Citation

  • Andrew Healy, 2005. "How Do People Learn by Listening to Others? Experimental Evidence from Thailand," Experimental 0512006, University Library of Munich, Germany.
    • Handle: RePEc:wpa:wuwpex:0512006
    Note: Type of Document - pdf; pages: 59. 44 double-spaced pages text, 15 pages experimental instructions and tables
    as

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    File URL: https://econwpa.ub.uni-muenchen.de/econ-wp/exp/papers/0512/0512006.pdf
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    References listed on IDEAS

    as
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    laboratory experiment; economic development; Bayesian updating; behavioral economics; learning;
    All these keywords.

    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; Information and Knowledge; Communication; Belief; Unawareness
    • O10 - Economic Development, Innovation, 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

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