Template-type: ReDif-Paper 1.0
Author-Name: Azomahou T.T. 
Author-Name: Opolot D. 
Author-workplace-name: UNU-MERIT
Title: Beliefs dynamics in communication networks
Abstract:  We study the dynamics of individual beliefs and information aggregation  when agents communicate via a social network. We provide a general  framework of social learning that captures the interactive effects of  three main factors on the structure of individual beliefs resulting from  such a dynamic process; that is historical factorsprior beliefs,  learning mechanismsrational and bounded rational learning, and the  topology of communication structure governing information exchange. More  specifically, we provide conditions under which heterogeneity and  consensus prevail. We then establish conditions on the structures of the  communication network, prior beliefs and private information for public  beliefs to correctly aggregate decentralized information. The speed of  learning is also established, but most importantly, its implications on  efficient information aggregation.     Keywords Learning, social networks, public beliefs, speed of learning,  information aggregation.
Keywords: Game Theory and Bargaining Theory: General; Search; Learning; Information and Knowledge; Communication; Belief; Network Formation and Analysis: Theory; 
Classification-JEL: C70; D83; D85; .
Series:  Working Papers
Creation-Date: 2014
Number: 034
File-URL: http://pub.maastrichtuniversity.nl/e83916a5-827b-4ea2-b38c-d985dbaa0c07
File-Format: application/pdf
File-Size: 710738
Handle: RePEc:unm:unumer:2014034