School of Economics

2007 Discussion Papers

School of Economics Discussion Paper 07/05

Social Learning, Search and Heterogeneity of Payoffs
Edward Cartwright

School of Economics
University of Kent at Canterbury

Abstract

We consider a simple model that combines elements of search and social learning. Acting in sequence, and observing the action adopted by a previous agent, agents must search for an action. We explore why agent heterogeneity may increase expected payoffs and demonstrate that social learning may be most effective if agents are heterogenous.

JEL Classification: C7; D8

Keywords: Social learning; search; herding

To download the file in PDF format click here

School of Economics, Keynes College, University of Kent, Canterbury, Kent, CT2 7NP

Undergraduate enquiries: +44 (0) 1227 827497, Postgraduate enquiries: +44 (0) 1227 827440 or email us

Last Updated: 05/12/2011