EconPapers    
Economics at your fingertips  
 

Social Learning about Consumption

Isabelle 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: Consumption rule; Evolutionary algorithms; Learning; Bounded rationality (search for similar items in EconPapers)
Date: 2016-10
Note: View the original document on HAL open archive server: https://hal.archives-ouvertes.fr/hal-01110653
References: Add references at CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

Published in Macroeconomic Dynamics, Cambridge University Press (CUP), 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:
Journal Article: SOCIAL LEARNING ABOUT CONSUMPTION (2016) Downloads
Working Paper: Social Learning about Consumption (2013) Downloads
Working Paper: Social Learning about Consumption (2013) Downloads
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:hal:journl:hal-01110653

DOI: 10.1017/S1365100515000097

Access Statistics for this paper

More papers in Post-Print from HAL
Bibliographic data for series maintained by CCSD ().

 
Page updated 2020-06-20
Handle: RePEc:hal:journl:hal-01110653