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Stationary social learning in a changing environment

Author

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  • Levy, Raphaël

    (HEC Paris)

  • Pęski, Marcin

    (University of Toronto - Department of Economics)

  • Vieille, Nicolas

    (HEC Paris)

Abstract

We consider social learning in a changing world. With changing states, societies can remain responsive only if agents regularly act upon fresh information, which drastically 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. 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

  • Levy, Raphaël & Pęski, Marcin & Vieille, Nicolas, 2022. "Stationary social learning in a changing environment," HEC Research Papers Series 1433, HEC Paris.
    • Handle: RePEc:ebg:heccah:1433
    DOI: 10.2139/ssrn.3999770
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    References listed on IDEAS

    as
    1. Raphael L'evy & Marcin Pk{e}ski & Nicolas Vieille, 2022. "Stationary social learning in a changing environment," Papers 2201.02122, arXiv.org.
    2. Xavier Vives, 1993. "How Fast do Rational Agents Learn?," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 60(2), pages 329-347.
    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.
    4. Marco Ottaviani & Giuseppe Moscarini & Lones Smith, 1998. "Social learning in a changing world," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 11(3), pages 657-665.
    5. Wanying Huang, 2022. "The Emergence of Fads in a Changing World," Papers 2208.14570, arXiv.org, revised Nov 2024.
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    Cited by:

    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.
    2. Florian Brandl, 2025. "The Social Learning Barrier," Papers 2504.12136, arXiv.org, revised Aug 2025.
    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

    Keywords

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    JEL classification:

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

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