Observational Learning with Position Uncertainty
Observational learning is typically examined when agents have precise information about their position in the sequence of play. We present a model in which agents are uncertain about their positions. Agents are allowed to have arbitrary ex-ante beliefs about their positions: they may observe their position perfectly, imperfectly, or not at all. Agents sample the decisions of past individuals and receive a private signal about the state of the world. We show that social learning is robust to position uncertainty. Under any sampling rule satisfying a stationarity assumption, learning is complete if signal strength is unbounded. In cases with bounded signal strength, we show that agents achieve what we define as constrained efficient learning: individuals do at least as well as the most informed agent would do in isolation.
|Date of creation:||2011|
|Contact details of provider:|| Postal: Via Real Collegio, 30, 10024 Moncalieri (To)|
Web page: http://www.carloalberto.org/
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Bikhchandani, Sushil & Hirshleifer, David & Welch, Ivo, 1992.
"A Theory of Fads, Fashion, Custom, and Cultural Change in Informational Cascades,"
Journal of Political Economy,
University of Chicago Press, vol. 100(5), pages 992-1026, October.
- Sushil Bikhchandani & David Hirshleifer & Ivo Welch, 2010. "A theory of Fads, Fashion, Custom and cultural change as informational Cascades," Levine's Working Paper Archive 1193, David K. Levine.
- Daron Acemoglu & Munther A. Dahleh & Ilan Lobel & Asuman Ozdaglar, 2011.
"Bayesian Learning in Social Networks,"
Review of Economic Studies,
Oxford University Press, vol. 78(4), pages 1201-1236.
- Guarino, Antonio & Harmgart, Heike & Huck, Steffen, 2011. "Aggregate information cascades," Games and Economic Behavior, Elsevier, vol. 73(1), pages 167-185, September.
- Ellison, Glenn & Fudenberg, Drew, 1993.
"Rules of Thumb for Social Learning,"
3196332, Harvard University Department of Economics.
- G. Ellison & D. Fudenberg, 2010. "Rules of Thumb for Social Learning," Levine's Working Paper Archive 435, David K. Levine.
- Ellison, Glenn & Fudenberg, Drew, 1992. "Rules of Thumb for Social Learning," IDEI Working Papers 17, Institut d'Économie Industrielle (IDEI), Toulouse.
- Allison, G. & Fudenberg, D., 1992. "Rules of Thumb for Social Learning," Working papers 92-12, Massachusetts Institute of Technology (MIT), Department of Economics.
- Smith, L. & Sorensen, P., 1996.
"Pathological Outcomes of Observational Learning,"
96-19, Massachusetts Institute of Technology (MIT), Department of Economics.
- Abhijit V. Banerjee, 1992. "A Simple Model of Herd Behavior," The Quarterly Journal of Economics, Oxford University Press, vol. 107(3), pages 797-817.
- Banerjee, Abhijit & Fudenberg, Drew, 2004.
Games and Economic Behavior,
Elsevier, vol. 46(1), pages 1-22, January.
- Herrera, Helios & Hörner, Johannes, 2013. "Biased social learning," Games and Economic Behavior, Elsevier, vol. 80(C), pages 131-146.
- Fudenberg, Drew & Ellison, Glenn, 1995.
"Word-of-Mouth Communication and Social Learning,"
3196300, Harvard University Department of Economics.
- Costain, James S., 2003.
"A herding perspective on global games and multiplicity,"
UC3M Working papers. Economics
we032908, Universidad Carlos III de Madrid. Departamento de Economía.
- Costain James S, 2007. "A Herding Perspective on Global Games and Multiplicity," The B.E. Journal of Theoretical Economics, De Gruyter, vol. 7(1), pages 1-55, June.
- Larson, Nathan, 2008.
"Inertia in social learning from a summary statistic,"
32143, University Library of Munich, Germany, revised Jul 2011.
- Larson, Nathan, 2015. "Inertia in social learning from a summary statistic," Journal of Economic Theory, Elsevier, vol. 159(PA), pages 596-626.
- Antonio Guarino & Philippe Jehiel, 2013.
"Social Learning with Coarse Inference,"
American Economic Journal: Microeconomics,
American Economic Association, vol. 5(1), pages 147-174, February.
- Celen, Bogachan & Kariv, Shachar, 2004. "Observational learning under imperfect information," Games and Economic Behavior, Elsevier, vol. 47(1), pages 72-86, April.
- Steven Callander & Johannes Horner, 2005.
"The Wisdom of the Minority,"
2005 Meeting Papers
683, Society for Economic Dynamics.
- Kenneth Hendricks & Alan Sorensen & Thomas Wiseman, 2012. "Observational Learning and Demand for Search Goods," American Economic Journal: Microeconomics, American Economic Association, vol. 4(1), pages 1-31, February.
When requesting a correction, please mention this item's handle: RePEc:cca:wpaper:206. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Giovanni Bert)
If references are entirely missing, you can add them using this form.