Social Learning in a Changing World

Giuseppe Moscarin, Marco Ottaviani () and Lones Smith ()
Authors registered in the RePEc Author Service: Giuseppe Moscarini ()

ELSE working papers from ESRC Centre on Economics Learning and Social Evolution

Abstract: In the social learning model of Banerjee [1] and Bikhchandani, Hirshleifer and Welch [2] individuals take actions sequentially after observing the history of actions taken by the predecessors and an informative private signal. If the state of the world is changing stochastically over time during the learning process, only temporary informational cascades situations where socially valuable information is wasted can arise. Furthermore, no cascade ever arises when the environment changes in a su¢ciently unpredictable way.

JEL-codes: D83 (search for similar items in EconPapers)
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Related works:
Working Paper: Social Learning in a Changing World (1996)
Journal Article: Social learning in a changing world (1998)
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Persistent link: http://EconPapers.repec.org/RePEc:els:esrcls:010

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