Abstract
The paper investigates the adaptive foundations of rational social learning. In a simple adaptive process individuals repeatedly learn from others’ actions in different social learning settings. If individuals distinguish settings, rational social learning emerges in the long-run. If individuals cannot distinguish settings or their experiences with each setting are scarce, long-run behavior is characterized by an Analogy-Based Expectations Equilibrium (Jehiel, 2005) where individuals make biased inferences from others’ actions. Adaptation across social learning settings renders Bayes’ rule payo-inferior compared to non-Bayesian belief updating rules and
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
