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Non-monotone social learning

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  • Zhang, Min

Abstract

We revisit the canonical binary-state model of social learning to investigate the possibility of non-monotone learning: ceteris paribus, with some predecessor(s) switching to actions that reveal greater confidence in one state of the world, agents nevertheless become more confident in the other. A necessary and sufficient condition for non-monotone learning is provided in an illustrative setting where agents are either uninformed or partially informed by binary private signals. In a general setting with continuous private signals, we obtain a sufficient condition for non-monotone learning that does not rely on the shape of the underlying information structures apart from a couple of simple boundary requirements. As a result, a social learning process that completes eventually can be well approximated in a way such that non-monotone learning and anti-imitation are bound to happen.

Suggested Citation

  • Zhang, Min, 2021. "Non-monotone social learning," Journal of Economic Behavior & Organization, Elsevier, vol. 185(C), pages 565-579.
  • Handle: RePEc:eee:jeborg:v:185:y:2021:i:c:p:565-579
    DOI: 10.1016/j.jebo.2021.03.009
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    More about this item

    Keywords

    Anti-Imitation; Information structure; Social learning;
    All these keywords.

    JEL classification:

    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness

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