American Economic Journal:
Microeconomics
ISSN 1945-7669 (Print) | ISSN 1945-7685 (Online)
Information Redundancy Neglect versus Overconfidence: A Social Learning Experiment
American Economic Journal: Microeconomics
vol. 13,
no. 3, August 2021
(pp. 163–97)
Abstract
We study social learning in a continuous action space experiment. Subjects, acting in sequence, state their beliefs 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'.Citation
Angrisani, Marco, Antonio Guarino, Philippe Jehiel, and Toru Kitagawa. 2021. "Information Redundancy Neglect versus Overconfidence: A Social Learning Experiment." American Economic Journal: Microeconomics, 13 (3): 163–97. DOI: 10.1257/mic.20180394Additional Materials
JEL Classification
- C91 Design of Experiments: Laboratory, Individual
- D12 Consumer Economics: Empirical Analysis
- D82 Asymmetric and Private Information; Mechanism Design
- D83 Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
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