Three Minds Equal Manjushari's Wisdom: An Anatomy of Informal Social Learning with Heterogenous Agents by the Hierarchical Bayesian Approach

Masahiro Sato, Rui Ota, Arata Ito and Makoto Yano

Discussion papers from Research Institute of Economy, Trade and Industry (RIETI)

Abstract: We learn from all sorts of informal social learning devices, which convey information only inaccurately. Despite this, however, a case supporting a positive contribution of such a device has not been captured in the existing empirical literature. This study builds a discrete choice model of consumption in which informal social learning takes place in a Beta-Bernoulli process of information update. The model is estimated by the Bayesian statistical method with Markov chain Monte Carlo simulation. It provides evidence supporting the positive role of an informal device, to which individual heterogeneity and the effacing of bad news contribute.

Pages: 34 pages
Date: 2020-12
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.rieti.go.jp/jp/publications/dp/20e092.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eti:dpaper:20092

Access Statistics for this paper

More papers in Discussion papers from Research Institute of Economy, Trade and Industry (RIETI) Contact information at EDIRC.
Bibliographic data for series maintained by TANIMOTO, Toko ().