The Implications of Pricing on Social Learning
Proceedings of the 2019 ACM Conference on Economics and Computation, pp. 557-558, 2019.
We study the implications of endogenous pricing for learning and welfare in the classic herding model. When prices are determined exogenously, it is known that learning occurs if and only if signals are unbounded. By contrast, we show that learning can occur when signals are bounded as long as non-conformism among consumers is scarce. Mor...More
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