This paper shows that price rigidity evolves in an economy populated by imperfectly rational agents who experiment with …

We study the inference and experimentation problem of an agent in a situation where the outcomes depend on the … external factors if they fail. They are too easily dissatisfied with their environment, which leads them to experiment in …

decreases over time and learning exacerbates his exploitation, unless he has been revealed to be talented. Therefore, the …

We report two information cascade game experiments that directly test the impact of altruism on observational learning … substantial public information which increases the earnings of participants. In Experiment 2, participants have better … opportunities to learn about the strategies played by observed which amplifies the impact of altruism on observational learning. …

infinite-horizon learning, and subjective expectations with Euler-equation learning. Under rational expectations, the model … necessitates of large, possibly unrealistically so, degrees of myopia. The same result persists under infinite-horizon learning …, given that agents are still remarkably far-sighted. But, under Euler-equation learning, the model can fit the data with only …

We designed four observational learning experiments to identify the key channels that, along with Bayes …-rational inferences, drive herd behavior. In Experiment 1, unobserved, whose actions remain private, learn from the public actions made in … observational learning accounts for the phenomenon of excessive herding, it captures well herd behavior with medium quality signals …

-term relationships were more resilient in the 2008/9 financial crisis. Based on these findings, we present a model of importer learning …

The paper investigates social-learning when the information structure is not commonly known. Individuals repeatedly … interact in social-learning settings with distinct information structures. In each round of interaction, they use their … behavior in the long-run if and only if individuals distinguish social-learning settings and receive rich feedback after each …