Experimentation in Networks (with Simon Board)
We introduce a model of strategic experimentation on social networks where forward-looking agents learn from their own and neighbors’ successes. In equilibrium, private
discovery is followed by social diffusion. Social learning crowds out own experimentation, so total information decreases with network density; we determine density thresholds below which agents asymptotically learn the state. In contrast, agent welfare is
single-peaked in network density, and achieves a second-best benchmark level at intermediate levels that achieve a balance between discovery and diffusion. We also show
how learning and welfare differ across directed, undirected and clustered networks.
Date:
5 May 2023, 14:15 (Friday, 2nd week, Trinity 2023)
Venue:
Manor Road Building, Manor Road OX1 3UQ
Venue Details:
Seminar Room G and https://zoom.us/j/93867615769?pwd=VmRJVVRkYlhUajllTEJyd2NsTUs3QT09
Speaker:
Moritz Meyer-ter-Vehn (UCLA)
Organising department:
Department of Economics
Part of:
Nuffield Economic Theory Seminar
Booking required?:
Not required
Audience:
Members of the University only
Editor:
Daria Ihnatenko
