Information Percolation
Name
mic.2.1.100.pdf
Description
Published version
Size
382.31 KB
Format
Adobe PDF
Checksum (MD5)
157aba30e0002503e9b469657931bbf7
Author(s)
Duffie, Darrell
Giroux, Gaston
Manso, Gustavo
Date Issued
February 2010
Journal
American Economic Journal: Microeconomics
Publisher
American Economic Association
Citation
Duffie, Darrell, Gaston Giroux, and Gustavo Manso. 2010. "Information Percolation." American Economic Journal: Microeconomics, 2 (1): 100-111.
Version
Final published version
Abstract
We study the "percolation" of information of common interest through a large market as agents encounter and reveal information to each other over time. We provide an explicit solution for the dynamics of the cross-sectional distribution of posterior beliefs. We also show that convergence of the cross-sectional distribution of beliefs to a common posterior is exponential and that the rate of convergence does not depend on the size of the groups of agents that meet. The rate of convergence is merely the mean rate at which an individual agent is matched.
Subjects
General Economics, Econometrics and Finance
MIT Department
Sloan School of Management
Terms of Use
Article is made available in accordance with the publisher's policy and may be subject to US copyright law. Please refer to the publisher's site for terms of use.
Persistent DSpace Link
DOI of Published Version
https://doi.org/10.1257/mic.2.1.100
