Template-type: ReDIF-Paper 1.0
Author-Name: Azomahou, T.
Author-Email: azomahou@merit.unu.edu
Author-Workplace-Name: UNU-MERIT
Author-Name: Opolot, D.
Author-Email: opolot@merit.unu.edu
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 factors prior 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.  
Classification-JEL: C70, D83, D85
Keywords: Learning, social networks, public beliefs, speed of learning, 
	 information aggregation.
Series: UNU-MERIT Working Papers
Creation-Date: 20140431
Number: 2014-034
File-URL: https://unu-merit.nl/publications/wppdf/2014/wp2014-034.pdf
File-Format: application/pdf
File-Size: 710 Kb
Handle: RePEc:unm:unumer:2014034