Social Learning Equilibria

Abstract

We consider social learning settings in which a group of agents face uncertainty regarding a state of the world, observe private signals, share the same utility function, and act in a general dynamic setting. We introduce Social Learning Equilibria, a static equilibrium concept that abstracts away from the details of the given dynamics, but nevertheless captures the corresponding asymptotic equilibrium behavior. We establish strong equilibrium properties on agreement, herding, and information aggregation. Keywords: Consensus; Information Aggregation; Herding