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Filtered Social Learning

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  • Paul Niehaus

Abstract

Knowledge sharing is economically important but also typically incomplete: we "filter" our communication. This paper analyzes the consequences of filtering. In the model, homogeneous agents share knowledge with their peers whenever the private benefits exceed communication costs. The welfare implications of this transmission mechanism hinge on whether units of knowledge complement, substitute for, or are independent of each other. Both substitutability and complementarity generate externalities; cheaper communication eliminates externalities in the former case but not necessarily in the latter. Complementary basic skills such as numeracy catalyze technology adoption, and adoption may be path dependent even when payoffs are certain and independent across agents.

Suggested Citation

  • Paul Niehaus, 2011. "Filtered Social Learning," Journal of Political Economy, University of Chicago Press, vol. 119(4), pages 686-720.
    • Handle: RePEc:ucp:jpolec:doi:10.1086/662627
    DOI: 10.1086/662627
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    Cited by:

    1. Rema Hanna & Sendhi Mullainathan & Josh Schwartstein, 2012. "Learning Through Noticing: Theory and Experimental Evidence in Farming," CID Working Papers 245, Center for International Development at Harvard University.
    2. , & , M. & ,, 2013. "Hierarchical cheap talk," Theoretical Economics, Econometric Society, vol. 8(1), January.
    3. Francis Bloch & Gabrielle Demange & Rachel Kranton, 2018. "Rumors And Social Networks," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 59(2), pages 421-448, May.
    4. Rune Dahl Fitjar & Martin Gjelsvik, 2018. "Why do firms collaborate with local universities?," Regional Studies, Taylor & Francis Journals, vol. 52(11), pages 1525-1536, November.
    5. Yazeed Abdul Mumin & Awudu Abdulai, 2022. "Social networks, adoption of improved variety and household welfare: evidence from Ghana," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 49(1), pages 1-32.
    6. Yazeed Abdul Mumin & Awudu Abdulai & Renan Goetz, 2023. "The role of social networks in the adoption of competing new technologies in Ghana," Journal of Agricultural Economics, Wiley Blackwell, vol. 74(2), pages 510-533, June.
    7. Couture, Victor, 2015. "Knowledge spillovers in cities: An auction approach," Journal of Economic Theory, Elsevier, vol. 157(C), pages 668-698.
    8. Umberto Garfagnini & Bruno Strulovici, 2012. "Social Learning and Innovation Cycles (revision of DP#1516, The Dynamics of Innovation)," Discussion Papers 1546, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
    9. S. Nageeb Ali & Ayal Chen-Zion & Erik Lillethun, 2020. "Reselling Information," Papers 2004.01788, arXiv.org, revised Dec 2022.
    10. Squires, Dale & Vestergaard, Niels, 2018. "Rethinking the commons problem: Technical change, knowledge spillovers, and social learning," Journal of Environmental Economics and Management, Elsevier, vol. 91(C), pages 1-25.
    11. Arun G. Chandrasekhar & Benjamin Golub & He Yang, 2018. "Signaling, Shame, and Silence in Social Learning," NBER Working Papers 25169, National Bureau of Economic Research, Inc.
    12. Harry Pei, 2022. "Reputation Effects under Short Memories," Papers 2207.02744, arXiv.org, revised Jan 2023.

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