This paper provides a formal characterization of the process of rational learning in social networks. Agents receive initial private information and select an action out of a choice set under uncertainty in each of infinitely many periods, observing the history of choices of their neighbors....

We consider a large class of social learning models in which a group of agents face uncertainty regarding a state of the world, share the same utility function, observe private signals, and interact in a general dynamic setting. We introduce Social Learning Equilibria, a static equilibrium...

This paper provides a model of social learning where the order in which actions are taken is determined by an m-dimensional integer lattice rather than along a line as in the herding model. The observation structure is determined by a random network. Every agent links to each of his preceding...

This paper considers a dynamic market with a strategic, price setting firm that knows the quality of the product it sells to an infinite set of rational consumers who enter the market sequentially and observe conditionally independent private signals about the quality. In equilibrium, the price...

This paper investigates the robustness of three of the core insights of the DeGroot model of boundedly rational updating in social networks. Two updating systems are ε-close if their supremum norm distance is equal to ε. An ε-perturbation of a DeGroot (weighted average) updating system is any...

This paper introduces a model of boundedly rational observational learning, which is rationally founded and applicable to general environments. Under Quasi-Bayesian updating each action is treated as if it were based only on the private information of its respective observed agent. We analyze...

We consider a dynamic market with two firms that sell competing common-value products. The firms offer both products to an infinite set of rational consumers. Each consumer observes a conditionally independent and identically distributed private signal about the product qualities. Consumers...

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...