Beliefs dynamics in communication networks

T. Azomahou () and Daniel Opolot
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T. Azomahou: UNU-MERIT

No 2014-034, MERIT Working Papers from United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT)

Abstract: We study the dynamics of individual beliefs and information aggregation when agents communicate via a social network. We provide a general framework of social learning that captures the interactive effects of three main factors on the structure of individual beliefs resulting from such a dynamic process; that is historical factors prior beliefs, learning mechanismsrational and bounded rational learning, and the topology of communication structure governing information exchange. More specifically, we provide conditions under which heterogeneity and consensus prevail. We then establish conditions on the structures of the communication network, prior beliefs and private information for public beliefs to correctly aggregate decentralized information. The speed of learning is also established, but most importantly, its implications on efficient information aggregation.

Keywords: Learning; social networks; public beliefs; speed of learning; information aggregation. (search for similar items in EconPapers)
JEL-codes: C70 D83 D85 (search for similar items in EconPapers)
Date: 2014-04-30
New Economics Papers: this item is included in nep-cdm, nep-cta, nep-gth, nep-ict, nep-mic and nep-net
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:unm:unumer:2014034

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