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We study social learning in a continuous action space experiment. Subjects, acting in sequence, state their belief about the value of a good, after observing their predecessors' statements and a private signal. We compare the behavior in the laboratory with the Perfect Bayesian Equilibrium prediction and the predictions of bounded rationality models of decision making: the redundancy of information neglect model and the overconfidence model. The results of our experiment are in line with the predictions of the overconfidence model and at odds with the others'.
Authors
Research Associate University College London and Brown University
Toru is a Research Associate of the IFS, a Professor of Economics at UCL and an Associate Professor in the Department of Economics at Brown University
Marco Angrisani
Antonio Guarino
Philippe Jehiel
Working Paper details
- DOI
- 10.1920/wp.cem.2018.6318
- Publisher
- The IFS
Suggested citation
Angrisani, M et al. (2018). Information redundancy neglect versus overconfidence: a social learning experiment. London: The IFS. Available at: https://ifs.org.uk/publications/information-redundancy-neglect-versus-overconfidence-social-learning-experiment-0 (accessed: 20 April 2024).
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