Social Learning and Network Externalities: Replicating Gilchrist and Sands (2016)
11 Pages Posted: 1 Sep 2018 Last revised: 19 May 2019
Date Written: May 16, 2019
Social learning is found to have a limited role in recent research by Gilchrist and Sands (2016), who instead emphasize the importance of network externalities. Narrow replication of their findings reveals no evidence of network externalities and strong evidence of social learning. A wider replication using alternative measures of movie quality, along with movie-week controls, suggests that their results are sensitive to the quality measure used. We conclude by offering an alternative that obviates the need to choose among competing quality measures, and find evidence of a larger role for social learning than Gilchrist and Sands' (2016) findings imply.
Keywords: network externalities, social learning
JEL Classification: D83
Suggested Citation: Suggested Citation