Showing 1 - 10 of 31
We analyze boundedly rational learning in social networks within binary action environments. We establish how learning … induces learning (i.e., convergence to the optimal action for every agent in every connected network) only in highly … asymmetric environments. In all other environments learning fails in networks with a diameter larger than four. Finally, we …
Persistent link: https://www.econbiz.de/10012415665
A learning rule is uncoupled if a player does not condition his strategy on the opponent's payoffs. It is radically …, radically uncoupled learning rules whose period-by-period behavior comes arbitrarily close to Nash equilibrium behavior in any …
Persistent link: https://www.econbiz.de/10011702986
The payoff matrix of a finite stage game is realized randomly, and then the stage game is repeated infinitely. The distribution over states of the world (a state corresponds to a payoff matrix) is commonly known, but players do not observe nature’s choice. Over time, they can learn the state...
Persistent link: https://www.econbiz.de/10011690752
Learning is crucial to organizational decision making but often needs to be delegated. We examine a dynamic delegation … the principal, privately learns the profitability over time and communicates to the principal. We formulate learning … delegation as a dynamic mechanism design problem and characterize the optimal delegation scheme. We show that private learning …
Persistent link: https://www.econbiz.de/10012587421
While payoff-based learning models are almost exclusively devised for finite action games, where players can test every … action, it is harder to design such learning processes for continuous games. We construct a stochastic learning rule …
Persistent link: https://www.econbiz.de/10012415470
We establish convergence of beliefs and actions in a class of one-dimensional learning settings in which the agent …. Applications of our framework include learning by a person who has an incorrect model of a technology she uses or is overconfident … about herself, learning by a representative agent who may misunderstand macroeconomic outcomes, as well as learning by a …
Persistent link: https://www.econbiz.de/10012415583
We consider dynamic team production in the presence of uncertainty. Team members receive interim feedback that depends on both their current effort level and the project's uncertain prospects. In this environment, each member can encourage the others by making them more optimistic about the...
Persistent link: https://www.econbiz.de/10012308721
This paper introduces a mechanism design approach that allows dealing with the multiple equilibrium problem, using mechanisms that are robust to bounded rationality. This approach is a tool for constructing supermodular mechanisms, i.e. mechanisms that induce games with strategic...
Persistent link: https://www.econbiz.de/10011695244
Under the assumption that individuals know the conditional distributions of signals given the payoff-relevant parameters, existing results conclude that as individuals observe infinitely many signals, their beliefs about the parameters will eventually merge. We first show that these results are...
Persistent link: https://www.econbiz.de/10011673061
We study perfect Bayesian equilibria of a sequential social learning model in which agents in a network learn about an … neighbors are mutually independent. We introduce a new metric of information diffusion in social learning, which is weaker than …
Persistent link: https://www.econbiz.de/10011673206