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Acquiring Information through Peers

Resource type
Authors/contributors
Title
Acquiring Information through Peers
Abstract
We develop an endogenous network formation model, in which agents form connections to acquire information. Our model features complementarity in actions as agents care not only about accuracy of their decision-making but also about the actions of other agents. In equilibrium, the information structure is a hierarchical network, and, under weakly convex cost of forming links, the equilibrium network is core-periphery. Although agents are ex ante identical, there is ex post heterogeneity in payoffs and actions.
Publication
American Economic Review
Volume
110
Issue
7
Pages
2128-52
Date
2020-07
Citation
Herskovic, B., & Ramos, J. (2020). Acquiring Information through Peers. American Economic Review, 110, 2128–2152.
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