This book provides a synthesis of the theoretical literature of the last ten years with some empirical applications. Social learning is about individuals learning from the behavior of others and may lead to outcomes such as herding, fads, frenzies, crashes, and booms

In this study we introduce a new stochastic choice rule that categorizes objects in order to simplify the choice procedure. At any given trial, the decision maker deliberately randomizes over mental categories and chooses the best item according to her utility function within the realized...