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This paper develops a methodology for estimating the parameters of dynamic opinion or expectation formation processes with social interactions. We study a simple stochastic framework of a collective process of opinion formation by a group of agents who face a binary decision problem. The...
Persistent link: https://www.econbiz.de/10003715033
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groups. The results give reasons to be optimistic about the further elaboration of the theory and measurement of the ability …
Persistent link: https://www.econbiz.de/10009722272
This paper develops a methodology for estimating the parameters of dynamic opinion or expectation formation processes with social interactions. We study a simple stochastic framework of a collective process of opinion formation by a group of agents who face a binary decision problem. The...
Persistent link: https://www.econbiz.de/10003721492
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When making decisions, agents tend to make use of decisions others have made in similar situations. Ignoring this behavior in empirical models can be interpreted as a problem of omitted variables and may seriously bias parameter estimates and harm inference. We suggest a possibility of...
Persistent link: https://www.econbiz.de/10011544393