Rational Learning and Bounded Learning in the Diffusion of Policy Innovations

Covadonga Meseguer
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Covadonga Meseguer: Juan March Institute, Spain, covadonga.meseguer@cide.edu

Rationality and Society, 2006, vol. 18, issue 1, 35-66

Abstract: In political science, rational learning and bounded learning are commonly studied as two opposing theories of policy choice. In this article, I use a rational learning approach to reach conclusions about bounded learning, showing that the two theories are not necessarily incompatible. By examining a rational learning model and the decisions of a set of developing countries to open up their trade regimes, I show that countries are particularly influenced by the choices of neighbouring countries and by particularly successful policy experiences. These are two typical contentions of the bounded learning literature. I argue that bounded learning and rational learning yield the same results as soon as one drops the rational learning assumption that there are zero costs to gathering new information. I use the discussion on rational learning versus bounded learning as a basis for exploring more general issues concerning the diffusion of policy innovations.

Keywords: bounded learning; developing countries; policy diffusion; rational learning; trade policy (search for similar items in EconPapers)
Date: 2006
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Citations: View citations in EconPapers (12)

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Persistent link: https://EconPapers.repec.org/RePEc:sae:ratsoc:v:18:y:2006:i:1:p:35-66

DOI: 10.1177/1043463106060152

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