Herding differently : A level-k model of social learning

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URL:	https://ub-madoc.bib.uni-mannheim.de/32667
URN:	urn:nbn:de:bsz:180-madoc-326677
Document Type:	Working paper
Year of publication:	2013
The title of a journal, publication series:	Working Paper Series
Volume:	13-01
Place of publication:	Mannheim
Publication language:	English
Institution:	School of Law and Economics > VWL, Verhaltensökonomik (Juniorprofessur) (Pencynski 2011-2017)
MADOC publication series:	Department of Economics > Working Paper Series
Subject:	330 Economics
Classification:	JEL: C91 , D82 , D83 , D84,
Keywords (English):	Social learning , levels of reasoning
Abstract:	This paper proposes a behavioral model of social learning that unies various forms of inferential reasoning in one hierarchy of types. Iterated best responses that are based on uninformative level-0 play lead to the following of the private information (level-1), to the following of the majority (level-2), to a differentiated view on predecessors (level-3), etc. I present evidence from three sources that these are the prevalent types of reasoning in social learning: a review of social learning studies, existing data from Celen and Kariv (2004) as well as new experimental data that includes written accounts of reasoning from incentivized intra-team communication.