IDEAS home Printed from https://ideas.repec.org/a/ucp/jpolec/doi10.1086-662627.html
   My bibliography  Save this article

Filtered Social Learning

Author

Listed:
  • Paul Niehaus

Abstract

Knowledge sharing is economically important but also typically incomplete: we "filter" our communication. This paper analyzes the consequences of filtering. In the model, homogeneous agents share knowledge with their peers whenever the private benefits exceed communication costs. The welfare implications of this transmission mechanism hinge on whether units of knowledge complement, substitute for, or are independent of each other. Both substitutability and complementarity generate externalities; cheaper communication eliminates externalities in the former case but not necessarily in the latter. Complementary basic skills such as numeracy catalyze technology adoption, and adoption may be path dependent even when payoffs are certain and independent across agents.

Suggested Citation

  • Paul Niehaus, 2011. "Filtered Social Learning," Journal of Political Economy, University of Chicago Press, vol. 119(4), pages 686-720.
    • Handle: RePEc:ucp:jpolec:doi:10.1086/662627
    DOI: 10.1086/662627
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1086/662627
    Download Restriction: Access to the online full text or PDF requires a subscription.
    File URL: http://dx.doi.org/10.1086/662627
    Download Restriction: Access to the online full text or PDF requires a subscription.
    File URL: https://libkey.io/10.1086/662627?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. David Marmaros & Bruce Sacerdote, 2006. "How Do Friendships Form?," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 121(1), pages 79-119.
    2. Foster, Andrew D & Rosenzweig, Mark R, 1995. "Learning by Doing and Learning from Others: Human Capital and Technical Change in Agriculture," Journal of Political Economy, University of Chicago Press, vol. 103(6), pages 1176-1209, December.
    3. Esther Duflo & Emmanuel Saez, 2003. "The Role of Information and Social Interactions in Retirement Plan Decisions: Evidence from a Randomized Experiment," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 118(3), pages 815-842.
    4. Bikhchandani, Sushil & Hirshleifer, David & Welch, Ivo, 1992. "A Theory of Fads, Fashion, Custom, and Cultural Change in Informational Cascades," Journal of Political Economy, University of Chicago Press, vol. 100(5), pages 992-1026, October.
    5. repec:pri:rpdevs:besley_case_diffusion.pdf is not listed on IDEAS
    6. Munshi, Kaivan, 2004. "Social learning in a heterogeneous population: technology diffusion in the Indian Green Revolution," Journal of Development Economics, Elsevier, vol. 73(1), pages 185-213, February.
    7. Timothy Besley & Anne Case, 1994. "Diffusion as a Learning Process: Evidence from HYV Cotton," Working Papers 228, Princeton University, Woodrow Wilson School of Public and International Affairs, Research Program in Development Studies..
    8. Luis Garicano, 2000. "Hierarchies and the Organization of Knowledge in Production," Journal of Political Economy, University of Chicago Press, vol. 108(5), pages 874-904, October.
    9. William A. Brock & Steven N. Durlauf, 2010. "Adoption Curves and Social Interactions," Journal of the European Economic Association, MIT Press, vol. 8(1), pages 232-251, March.
    10. Edward L. Glaeser & Cass R. Sunstein, 2007. "Extremism and Social Learning," NBER Working Papers 13687, National Bureau of Economic Research, Inc.
    11. Boyan Jovanovic & Rafael Rob, 1989. "The Growth and Diffusion of Knowledge," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 56(4), pages 569-582.
    12. Ellison, Glenn & Fudenberg, Drew, 1993. "Rules of Thumb for Social Learning," Journal of Political Economy, University of Chicago Press, vol. 101(4), pages 612-643, August.
    13. Donald M. Topkis, 1978. "Minimizing a Submodular Function on a Lattice," Operations Research, INFORMS, vol. 26(2), pages 305-321, April.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Rema Hanna & Sendhi Mullainathan & Josh Schwartstein, 2012. "Learning Through Noticing: Theory and Experimental Evidence in Farming," CID Working Papers 245, Center for International Development at Harvard University.
    2. , & , M. & ,, 2013. "Hierarchical cheap talk," Theoretical Economics, Econometric Society, vol. 8(1), January.
    3. Francis Bloch & Gabrielle Demange & Rachel Kranton, 2018. "Rumors And Social Networks," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 59(2), pages 421-448, May.
    4. Rune Dahl Fitjar & Martin Gjelsvik, 2018. "Why do firms collaborate with local universities?," Regional Studies, Taylor & Francis Journals, vol. 52(11), pages 1525-1536, November.
    5. Yazeed Abdul Mumin & Awudu Abdulai, 2022. "Social networks, adoption of improved variety and household welfare: evidence from Ghana," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 49(1), pages 1-32.
    6. Yazeed Abdul Mumin & Awudu Abdulai & Renan Goetz, 2023. "The role of social networks in the adoption of competing new technologies in Ghana," Journal of Agricultural Economics, Wiley Blackwell, vol. 74(2), pages 510-533, June.
    7. Couture, Victor, 2015. "Knowledge spillovers in cities: An auction approach," Journal of Economic Theory, Elsevier, vol. 157(C), pages 668-698.
    8. Umberto Garfagnini & Bruno Strulovici, 2012. "Social Learning and Innovation Cycles (revision of DP#1516, The Dynamics of Innovation)," Discussion Papers 1546, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
    9. S. Nageeb Ali & Ayal Chen-Zion & Erik Lillethun, 2020. "Reselling Information," Papers 2004.01788, arXiv.org, revised Dec 2022.
    10. Ryoji Jinushi, 2024. "Costly Advertising and Information Congestion: Insights from Pigou's Successors," Working Papers e210, Tokyo Center for Economic Research.
    11. Squires, Dale & Vestergaard, Niels, 2018. "Rethinking the commons problem: Technical change, knowledge spillovers, and social learning," Journal of Environmental Economics and Management, Elsevier, vol. 91(C), pages 1-25.
    12. Arun G. Chandrasekhar & Benjamin Golub & He Yang, 2018. "Signaling, Shame, and Silence in Social Learning," NBER Working Papers 25169, National Bureau of Economic Research, Inc.
    13. Harry Pei, 2022. "Reputation Effects under Short Memories," Papers 2207.02744, arXiv.org, revised Jan 2023.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. John Beshears & James J. Choi & David Laibson & Brigitte C. Madrian & Katherine L. Milkman, 2015. "The Effect of Providing Peer Information on Retirement Savings Decisions," Journal of Finance, American Finance Association, vol. 70(3), pages 1161-1201, June.
    2. Fishman, Arthur & Fishman, Ram & Gneezy, Uri, 2019. "A tale of two food stands: Observational learning in the field," Journal of Economic Behavior & Organization, Elsevier, vol. 159(C), pages 101-108.
    3. Daron Acemoglu & Munther A. Dahleh & Ilan Lobel & Asuman Ozdaglar, 2011. "Bayesian Learning in Social Networks," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 78(4), pages 1201-1236.
    4. Nicholas Magnan & David J Spielman & Travis J. Lybbert & Kajal Gulati, 2013. "Leveling with Friends: Social Networks and Indian Farmers’ Demand for Agricultural Custom Hire Services," Working Papers id:5591, eSocialSciences.
    5. Ma, Xingliang & Spielman, David J. & Nazli, Hina & Zambrano, Patricia & Zaidi, Fatima & Kouser, Shahzad, 2014. "The role of social networks in an imperfect market for agricultural technology products: Evidence on Bt cotton adoption in Pakistan," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 175276, Agricultural and Applied Economics Association.
    6. Mira Frick & Yuhta Ishii, 2015. "Innovation Adoption by Forward-Looking Social Learners," Cowles Foundation Discussion Papers 1877, Cowles Foundation for Research in Economics, Yale University.
    7. Huanxiu Guo & Sébastien Marchand, 2013. "Is participatory social learning a performance driver for Chinese smallholder farmers?," Working Papers halshs-00878886, HAL.
    8. Camilo García-Jimeno & Angel Iglesias & Pinar Yildirim, 2018. "Women, Rails and Telegraphs: An Empirical Study of Information Diffusion and Collective Action," NBER Working Papers 24495, National Bureau of Economic Research, Inc.
    9. Lamberson PJ, 2010. "Social Learning in Social Networks," The B.E. Journal of Theoretical Economics, De Gruyter, vol. 10(1), pages 1-33, August.
    10. Magnan, Nicholas & Spielman, David J. & Gulati, Kajal, 2013. "Female social networks and learning about a new technology in eastern Uttar Pradesh, India," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150688, Agricultural and Applied Economics Association.
    11. H. Peyton Young, 2009. "Innovation Diffusion in Heterogeneous Populations: Contagion, Social Influence, and Social Learning," American Economic Review, American Economic Association, vol. 99(5), pages 1899-1924, December.
    12. B Kelsey Jack, "undated". "Market Inefficiencies and the Adoption of Agricultural Technologies in Developing Countries," CID Working Papers 50, Center for International Development at Harvard University.
    13. Yamauchi, Futoshi, 2007. "Social learning, neighborhood effects, and investment in human capital: Evidence from Green-Revolution India," Journal of Development Economics, Elsevier, vol. 83(1), pages 37-62, May.
    14. Syngjoo Choi & Douglas Gale & Shachar Kariv, 2012. "Social learning in networks: a Quantal Response Equilibrium analysis of experimental data," Review of Economic Design, Springer;Society for Economic Design, vol. 16(2), pages 135-157, September.
    15. Stone, Glenn Davis & Flachs, Andrew & Diepenbrock, Christine, 2014. "Rhythms of the herd: Long term dynamics in seed choice by Indian farmers," Technology in Society, Elsevier, vol. 36(C), pages 26-38.
    16. Larson, Nathan, 2015. "Inertia in social learning from a summary statistic," Journal of Economic Theory, Elsevier, vol. 159(PA), pages 596-626.
    17. Wendy Janssens, 2005. "Measuring Externalities in Program Evaluation," Tinbergen Institute Discussion Papers 05-017/2, Tinbergen Institute, revised 30 Mar 2006.
    18. Liverpool-Tasie, Lenis Saweda O. & Winter-Nelson, Alex, 2009. "Poverty status and the impact of social networks on smallholder technology adoption in rural Ethiopia," 2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin 49357, Agricultural and Applied Economics Association.
    19. Ariel BenYishay & A. Mushfiq Mobarak, 2014. "Social Learning and Communication," NBER Working Papers 20139, National Bureau of Economic Research, Inc.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ucp:jpolec:doi:10.1086/662627. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Journals Division (email available below). General contact details of provider: https://www.journals.uchicago.edu/JPE .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.