Motivated by real-world information economics problems and by experimental findings on overconfidence, this paper introduces a general epistemic construction to model strategic interaction with incomplete information, where the players’ self-perception may be mistaken. This allows us to...

In the social learning model of Banerjee [1] and Bikhchandani, Hirshleifer and Welch [2] individuals take actions sequentially after observing the history of actions taken by the predecessors and an informative private signal. If the state of the world is changing stochastically over time during...