We study a boundedly rational model of imitation when payoff distributions of actions differ across types of individuals. Individuals observe others’ actions and payoffs, and a comparison signal. One of two inefficiencies always arises: (i) uniform adoption, i.e., all individuals choose the...

We study a boundedly rational model of imitation when payoff distributions of actions differ across types of individuals. Individuals observe others’ actions and payoffs, and a comparison signal. One of two inefficiencies always arises: (i) uniform adoption, i.e., all individuals choose the...

We consider an heterogeneous population in which we make a partition into two groups that are homogeneous with respect to the characteristics, other than the income, with fiscal incidence. The differences between both groups are taken into account by means of a profile of utility functions and...