 Social Learning about ConsumptionIsabelle Salle and Pascal Seppecher Post-Print from HAL Abstract: This paper applies a social learning model to the optimal consumption rule of Allen & Carroll (2001), and delivers convincing convergence dynamics towards the optimal rule. These findings constitute a significant improvement regarding previous results in the literature, both in terms of speed of convergence and parsimony of the learning model. The learning model exhibits several appealing features: it is frugal, easy to apply to a various range of learning objectives, and requires few procedures and little information. Particular care is given to behavioural interpretation of the modelling assumptions in light of evidence from the fields of psychology and social science. Our results highlight the need to depart from the genetic metaphor, and account for intentional decision-making, based on agents' relative performances. By contrast, we show that convergence is strongly hindered by exact imitation processes, or random exploration mechanisms, which are usually assumed when modelling social learning behaviour. Our results suggest a method for modelling bounded rationality, which could be interestingly tested in a wide range of economic models with adaptive dynamics. Keywords: Bounded rationality; Learning; Consumption rule; Evolutionary algorithms (search for similar items in EconPapers) Published in Macroeconomic Dynamics, 2016, 20 (7), pp.1795-1825. ⟨10.1017/S1365100515000097⟩ There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-01110653 DOI: 10.1017/S1365100515000097 Access Statistics for this paper More papers in Post-Print from HAL |
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