Where do Personal Experience and Imitation Drive Choice?
This papers investigates the efficiency of aggregate choice in the long run when the individual decision is driven by both personal experience and imitation. Personal experience is represented by choice sets depending upon previous choices. Imitation is modeled first through popularity weighting and then through a network of social influences. Intuition suggests imitation can work as a source of variety, spreading behaviors among which memory can make selection. However inefficiencies will persist in the stochastically stable distribution whenever the length of memory is not sufficiently long to stop inferior behaviors from moving perpetually along periodic cycles of social influences.
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- Fernando Vega-Redondo, 1997.
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- Karl H. Schlag, "undated".
"Why Imitate, and if so, How? A Bounded Rational Approach to Multi- Armed Bandits,"
ELSE working papers
028, ESRC Centre on Economics Learning and Social Evolution.
- Schlag, Karl H., 1998. "Why Imitate, and If So, How?, : A Boundedly Rational Approach to Multi-armed Bandits," Journal of Economic Theory, Elsevier, vol. 78(1), pages 130-156, January.
- Karl H. Schlag, 1995. "Why Imitate, and if so, How? A Bounded Rational Approach to Multi-Armed Bandits," Discussion Paper Serie B 361, University of Bonn, Germany, revised Mar 1996.
- Leonardo Boncinelli, 2007. "Choice under Markovian Constraints," Department of Economics University of Siena 516, Department of Economics, University of Siena.
- Glenn Ellison, 2000. "Basins of Attraction, Long-Run Stochastic Stability, and the Speed of Step-by-Step Evolution," Review of Economic Studies, Oxford University Press, vol. 67(1), pages 17-45.
- K. Schlag, 2010.
"Why Imitate, and if so, How? Exploring a Model of Social Evolution,"
Levine's Working Paper Archive
454, David K. Levine.
- Schlag, Karl H., 1994. "Why Imitate, and if so, How? Exploring a Model of Social Evolution," Discussion Paper Serie B 296, University of Bonn, Germany.
- Offerman, Theo & Sonnemans, Joep, 1998. "Learning by experience and learning by imitating successful others," Journal of Economic Behavior & Organization, Elsevier, vol. 34(4), pages 559-575, March.
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