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Stationary social learning in a changing environment

Author

Listed:
  • Raphael L'evy
  • Marcin Pk{e}ski
  • Nicolas Vieille

Abstract

We consider social learning in a changing world. Society can remain responsive to state changes only if agents regularly act upon fresh information, which limits the value of social learning. When the state is close to persistent, a consensus whereby most agents choose the same action typically emerges. The consensus action is not perfectly correlated with the state though, because the society exhibits inertia following state changes. Phases of inertia may be longer when signals are more precise, even if agents draw large samples of past actions, as actions then become too correlated within samples, thereby reducing informativeness and welfare.

Suggested Citation

  • Raphael L'evy & Marcin Pk{e}ski & Nicolas Vieille, 2022. "Stationary social learning in a changing environment," Papers 2201.02122, arXiv.org.
    • Handle: RePEc:arx:papers:2201.02122
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    References listed on IDEAS

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    Cited by:

    1. Florian Brandl, 2025. "The Social Learning Barrier," Papers 2504.12136, arXiv.org, revised Aug 2025.
    2. Raphaël Levy & Marcin Pęski & Nicolas Vieille, 2024. "Stationary Social Learning in a Changing Environment," Econometrica, Econometric Society, vol. 92(6), pages 1939-1966, November.
    3. 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.

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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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