We designed four observational learning experiments to identify the key channels that, along with Bayes … observational learning accounts for the phenomenon of excessive herding, it captures well herd behavior with medium quality signals …-rational inferences, drive herd behavior. In Experiment 1, unobserved, whose actions remain private, learn from the public actions made in …

This paper proposes a behavioral model of social learning that unies various forms of inferential reasoning in one … present evidence from three sources that these are the prevalent types of reasoning in social learning: a review of social … learning studies, existing data from Celen and Kariv (2004) as well as new experimental data that includes written accounts of …

We report two information cascade game experiments that directly test the impact of altruism on observational learning … substantial public information which increases the earnings of participants. In Experiment 2, participants have better … opportunities to learn about the strategies played by observed which amplifies the impact of altruism on observational learning. …

ability to that of character skills, and find that both cognition and personality affect behavior and learning. More agreeable … of play towards Nash equilibrium in repeated strategic interactions. We study behavior in a p-beauty contest experiment … understand better how subjects with different cognitive abilities learn differently, we estimate a structural model of learning …

This paper develops a theory in which heterogeneity in political preferences produces a partisan disagreement about … objective facts. A political decision involving both idiosyncratic preferences and scientific knowledge is considered. Voters … voters' intrinsic preferences or because of rigidities in the political process. The theory predicts that providing mixed …

heuristic, gambler’s fallacy and hot hand fallacy—on the mechanisms of stock market decision making and, in particular, the … decision-making technique will most likely accept other techniques as well. Furthermore, we determine that the correlation … on simplifying decision-making techniques in general or to reject all of them. Alternatively, this finding may suggest …

There are many important decision problems where learning through experimentation is costly or impossible. In these …. In this paper, we design an investment game which allows us to study the influence of selection when learning from others … degree of bias due to selection neglect increases when other decision makers become more informed, or become more rational …

become extremely and wrongly confident about the state of the world -- Social learning ; Non-Bayesian updating ; Herding …We revisit the economic models of social learning by assuming that individuals update their beliefs in a non … heterogeneous updating rules in a simple social learning environment reconciles equilibrium predictions with laboratory evidence …