Conformism and Diversity Under Social Learning

Posted: 26 Jul 2001

See all articles by Vankatesh Bala

Vankatesh Bala

McGill University - Department of Economics

Sanjeev Goyal

University of Cambridge

Abstract

When there are competing technologies or products with unknown payoffs an important question is which technology will prevail and whether technologies with different payoffs can coexist in the long run. In this paper, we use a social learning model with local interactions to study this question. We show that the adoption of technologies as well as the prospects of conformism/diversity depend crucially on the nature of interaction between individuals and the heterogeneity of preferences in a society.

Keywords and Phrases: Social learning, Local interactions, Conformism/ diversity, Networks.

JEL Classification: D83, L15, O30, Q16, R10

Suggested Citation

Bala, Vankatesh and Goyal, Sanjeev, Conformism and Diversity Under Social Learning. Available at SSRN: https://ssrn.com/abstract=250651

Vankatesh Bala

McGill University - Department of Economics ( email )

855 Sherbrooke Street West
Montreal, QC H3A 2T7
Canada

Sanjeev Goyal (Contact Author)

University of Cambridge ( email )

Trinity Ln
Cambridge, CB2 1TN
United Kingdom

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