Barucci, Emilio; Tolotti, Marco - In: Journal of Economic Dynamics and Control 36 (2012) 12, pp. 1855-1866
We analyze a class of dynamic binary choice models with social interaction. Agents are heterogeneous and their degree of conformism (taste externality) changes over time endogenously. We show that social interaction in itself is not enough to observe multiple equilibria and that the equilibrium...