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Word-of-Mouth Communication and Social Learning
Open accessAbstract
This paper studies the way that word-of-mouth communication aggregates the information of individual agents. We find that the structure of the communication process determines whether all agents end up making identical choices, with less communication making this conformity more likely. Despite the players' naive decision rules and the stochastic decision environment, word-of-mouth communication may lead all players to adopt the action that is on average superior. These socially efficient outcomes tend to occur when each agent samples only a few others.
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Citations
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Metadata
- Authors
- Ellison, G., & Fudenberg, D.
- Venue
- The Quarterly Journal of Economics
- Publisher
- Oxford University Press (OUP)
- Published
- 1995-02-01
- Volume
- 110
- Issue
- 1
- Pages
- 93-125
- ISSN
- 0033-5533 (ISSN-L)
- 1531-4650
- OpenAlex
- W2122489728
- Cited by
- 894
- References
- 0
- FWCI
- 16.96
- Type
- journal article
- Language
- en
- Open access
- green
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Bibliographic data: Semantic Scholar, OpenAlex, Crossref.
Contains information from the Semantic Scholar Academic Graph Datasets, made available under the ODC Attribution License (ODC-BY 1.0).
Semantic Scholar’s data is described in: Kinney, R., et al. (2023). The Semantic Scholar Open Data Platform. arXiv:2301.10140.
