We analyze boundedly rational updating from aggregate statistics in a modelwith binary actions and binary states. Agents each take an irreversible action in sequence after observing the unordered set of previous actions. Each agent first forms her prior based on the aggregate statistic, then...

This paper investigates the dynamics of product adoption under incomplete information regarding product quality. A revising agent observes a small sample of actions played in the population and also receives a private signal indicating the realized state. Using a simple heuristic, the agent...