We study the impact of adaptive learning for the design of a robust monetary policy using a small open-economy New Keynesian model. We find that slightly departing from rational expectations substantially changes the way the central bank deals with model misspecification. Learning induces an...

We study the impact of observational learning in large scale congested service systems with servers having heterogenous quality levels and customers that are heterogonously informed about the server quality. Providing congestion information to all customers allows them to avoid congested...

The recent nonexperimental literature on social learning focuses on showing that observational learning exists, that is, individuals do indeed draw inferences by observing the actions of others. We take this literature a step further by analyzing whether individuals are Bayesian social learners....