Larson, Nathan (2008): Inertia in social learning from a summary statistic.
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We model normal-quadratic social learning with agents who observe a summary statistic over past actions, rather than complete action histories. Because an agent with a summary statistic cannot correct for the fact that earlier actions influenced later ones, even a small presence of old actions in the statistic can introduce very persistent errors. Depending on how fast these old actions fade from view, social learning can either be as fast as if agents’ private information were pooled (rate n) or it can slow to a crawl (rate ln n). We also examine extensions to learning from samples of actions, learning about a moving target, heterogeneous preferences, and biases toward own information.
|Item Type:||MPRA Paper|
|Original Title:||Inertia in social learning from a summary statistic|
|Keywords:||social learning; herding; speed of learning|
|Subjects:||D - Microeconomics > D8 - Information, Knowledge, and Uncertainty > D81 - Criteria for Decision-Making under Risk and Uncertainty
D - Microeconomics > D8 - Information, Knowledge, and Uncertainty > D83 - Search; Learning; Information and Knowledge; Communication; Belief
|Depositing User:||Nathan Larson|
|Date Deposited:||11. Jul 2011 19:56|
|Last Modified:||02. Mar 2013 08:45|
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In with the new or out with the old: bottlenecks in social learning. (deposited UNSPECIFIED)
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