1 Dept. of Statistics, Wharton School; University of Pennsylvania; Philadelphia PA 19104 U.S.A. · 2 Dept. of Statistics; University of California, Berkeley; Berkeley CA 94720 U.S.A. · 3 Division of the Humanities and Social Sciences; California Institute of Technology; Pasadena CA 91125 U.S.A.
open access
Abstract
We consider a group of strategic agents who must each repeatedly take one of two possible actions. They learn which of the two actions is preferable from initial private signals and by observing the actions of their neighbors in a social network.