Social Learning Equilibria
49 Pages Posted: 23 Feb 2018 Last revised: 29 Sep 2019
Date Written: September 27, 2019
We consider a large class of social learning models in which a group of agents face uncertainty regarding a state of the world, share the same utility function, observe private signals, and interact in a general dynamic setting. We introduce Social Learning Equilibria, a static equilibrium concept that abstracts away from the details of the given extensive form, but nevertheless captures the corresponding asymptotic equilibrium behavior. We establish general conditions for agreement, herding, and information aggregation in equilibrium, highlighting a connection between agreement and information aggregation.
Keywords: Social learning, agreement, herding
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