, improvements in decision quality cease. A literature on word-of-mouth learning shows how observation of outcomes as well as actions … the cascades/herding literature. In a setting which adds 'conversational' learning about both the payoff outcomes of … though they can discuss the outcomes of their choices. Models of informational herding or cascades have examined how rational …

elicited data. As an illustration, the methodology is applied to a double auction experiment, where traders' beliefs about the …

-level reasoning in later rounds of the experiments. Participants display difficulties in transferring learning to unravel in a game … with two quality levels compared to a game with four quality levels. There is weak evidence for learning higher …

informed to uninformed firms, moderates asymmetric incentives in information acquisition and renders the aggregate learning … outcome approximately acyclical. Our results challenge the prevailing view of procyclical learning as the source of asymmetric … business cycles. -- information choice ; rational expectations ; asymmetric information ; Bayesian learning ; strategic …

is used to test hypotheses of HB. We show the common knowledge assumptions of the PI theory are implausible. The theories … differ on four main analytical issues. (1) The pricing theory under PI implies prices have infinite memory and at each t … rationality conditions impose restrictions on any HB theory. We explain the tight restrictions on the model's parameters imposed …

behavior of others. This may lead to welfare-reducing 'overreactions' to public signals. We present an experiment based on a …

behavior of others. We present an experiment in which agents' optimal actions are a weighted average of the fundamental state …

behavior of others. This may lead to welfare-reducing ‘overreactions’ to public signals. We present an experiment based on a …