Patel, Amrish; Cartwright, Edward - In: Journal of Institutional and Theoretical Economics (JITE) 168 (2012) 2, pp. 280-289
In a signalling model of conformity, we demonstrate that naïve observers, those that take actions at face value, constrain the set of actions that can possibly be social norms. With rational observers many actions can be norms, but with naïve observers only actions close to that preferred by...