Information Redundancy Neglect versus Overconfidence: A Social Learning Experiment

Marco Angrisani (1) , Antonio Guarino (2) , Philippe Jehiel (3, 4, 2) , Toru Kitagawa (2)

1 USC - University of Southern California
2 UCL - University College of London [London]
3 PJSE - Paris Jourdan Sciences Economiques
4 PSE - Paris School of Economics

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'.

Domaines: Economies et finances

Marco Angrisani, Antonio Guarino, Philippe Jehiel, Toru Kitagawa. Information Redundancy Neglect versus Overconfidence: A Social Learning Experiment. 2019. ⟨halshs-02183322⟩