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Stationary Social Learning in a Changing Environment

Author

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  • Raphaël Levy
  • Marcin Pęski
  • Nicolas Vieille

Abstract

We consider social learning in a changing world. With changing states, societies can be responsive only if agents regularly act upon fresh information, which significantly limits the value of observational learning. When the state is close to persistent, a consensus whereby most agents choose the same action typically emerges. However, the consensus action is not perfectly correlated with the state, because societies exhibit inertia following state changes. When signals are precise enough, learning is incomplete, even if agents draw large samples of past actions, as actions then become too correlated within samples, thereby reducing informativeness and welfare.

Suggested Citation

  • Raphaël Levy & Marcin Pęski & Nicolas Vieille, 2024. "Stationary Social Learning in a Changing Environment," Econometrica, Econometric Society, vol. 92(6), pages 1939-1966, November.
    • Handle: RePEc:wly:emetrp:v:92:y:2024:i:6:p:1939-1966
    DOI: 10.3982/ECTA20475
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    1. Raphaël Levy & Marcin Pęski & Nicolas Vieille, 2024. "Stationary Social Learning in a Changing Environment," Econometrica, Econometric Society, vol. 92(6), pages 1939-1966, November.
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    Cited by:

    1. Florian Brandl, 2025. "The Social Learning Barrier," Papers 2504.12136, arXiv.org, revised Aug 2025.
    2. Daron Acemoglu & Asuman Ozdaglar & Sarath Pattathil, 2023. "Learning, Diversity and Adaptation in Changing Environments: The Role of Weak Links," NBER Working Papers 31214, National Bureau of Economic Research, Inc.
    3. Raphaël Levy & Marcin Pęski & Nicolas Vieille, 2024. "Stationary Social Learning in a Changing Environment," Econometrica, Econometric Society, vol. 92(6), pages 1939-1966, November.

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    More about this item

    JEL classification:

    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness

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