
doi: 10.2139/ssrn.2754034
handle: 10419/130412
The paper investigates social-learning when the information structure is not commonly known. Individuals repeatedly interact in social-learning settings with distinct information structures. In each round of interaction, they use their experience gained in past rounds to draw inferences from their predecessors’ current decisions. Such adaptation yields rational behavior in the long-run if and only if individuals distinguish social-learning settings and receive rich feedback after each round. Limited feedback may lead individuals to imitate uninformed predecessors. Moreover, adaptation across social-learning settings renders Bayes’ rule payoff-inferior compared to non-Bayesian belief updating rules and suggests that belief-updating rules are heterogeneous in the population.
JEL: C - Mathematical and Quantitative Methods/C.C7 - Game Theory and Bargaining Theory/C.C7.C73 - Stochastic and Dynamic Games • Evolutionary Games • Repeated Games, 330, ddc:330, analogies, adaptation, and Uncertainty/D.D8.D82 - Asymmetric and Private Information • Mechanism Design, [SHS.ECO]Humanities and Social Sciences/Economics and Finance, JEL: D - Microeconomics/D.D8 - Information, informational herding, analogy-based expectations equilibrium, Non-Bayesian updating, non-Bayesian updating, D82, Knowledge, C73, D83, social Learning, and Uncertainty/D.D8.D83 - Search • Learning • Information and Knowledge • Communication • Belief • Unawareness, social Learning,informational herding,adaptation,analogies,non-Bayesian updating
JEL: C - Mathematical and Quantitative Methods/C.C7 - Game Theory and Bargaining Theory/C.C7.C73 - Stochastic and Dynamic Games • Evolutionary Games • Repeated Games, 330, ddc:330, analogies, adaptation, and Uncertainty/D.D8.D82 - Asymmetric and Private Information • Mechanism Design, [SHS.ECO]Humanities and Social Sciences/Economics and Finance, JEL: D - Microeconomics/D.D8 - Information, informational herding, analogy-based expectations equilibrium, Non-Bayesian updating, non-Bayesian updating, D82, Knowledge, C73, D83, social Learning, and Uncertainty/D.D8.D83 - Search • Learning • Information and Knowledge • Communication • Belief • Unawareness, social Learning,informational herding,adaptation,analogies,non-Bayesian updating
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