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This paper presents a generalization of the DeGroot learning rule in which social learning can lead to polarization, even for connected networks. I first develop a model of biased assimilation in which the utility an agent receives from past decisions depends on current beliefs when uncertainty...
Persistent link: https://www.econbiz.de/10013000808
This paper studies an agent forming beliefs by translating data into signals about the truth of propositions. The agent faces ambiguity when she observes low-quality data yielding set-identified signals. Rules for decision-making under ambiguity choose the single belief generating an extreme...
Persistent link: https://www.econbiz.de/10012982711