Social Learning in a Changing World

MIT Dept. of Economics Working Paper #96-34

Posted: 30 Jun 1997

See all articles by Giuseppe Moscarini

Giuseppe Moscarini

Cowles Foundation for Research in Economics; Yale University - Department of Economics

Marco Ottaviani

Bocconi University - Department of Economics

Lones Smith

University of Wisconsin at Madison - Department of Economics

Multiple version iconThere are 2 versions of this paper

Date Written: November 1996

Abstract

In the social learning model of Banerjee (1992) and Kikhchandani, Hirshleifer and Welch (1992), individuals take actions sequentially after observing the history of actions taken by the predecessors and an informative private signal. If the state of the world is changing stochastically over time during the learning process, only temporary informational cascades--situations where socially valuable information is wasted--can arise. Furthermore, no cascade ever arises when the environment changes in a sufficiently unpredictable way.

JEL Classification: D83

Suggested Citation

Moscarini, Giuseppe and Ottaviani, Marco and Smith, Lones, Social Learning in a Changing World (November 1996). MIT Dept. of Economics Working Paper #96-34, Available at SSRN: https://ssrn.com/abstract=8600

Giuseppe Moscarini

Cowles Foundation for Research in Economics ( email )

Box 208281
New Haven, CT 06520-8281
United States

HOME PAGE: http://economics.yale.edu/people/giuseppe-moscarini

Yale University - Department of Economics ( email )

28 Hillhouse Ave
New Haven, CT 06520-8268
United States
203-432-3596 (Phone)

HOME PAGE: http://www.econ.yale.edu/~mosca/mosca.html

Marco Ottaviani

Bocconi University - Department of Economics ( email )

Via Gobbi 5
Milan, 20136
Italy

Lones Smith (Contact Author)

University of Wisconsin at Madison - Department of Economics ( email )

1180 Observatory Drive
Madison, WI 53706-1393
United States
608-263-3871 (Phone)
608-262-2033 (Fax)

HOME PAGE: http://www.lonessmith.com

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Abstract Views
602
PlumX Metrics