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| Dublin Core |
PKP Metadata Items |
Metadata for this document |
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| 1. |
Title |
Title of document |
Innovation adoption by forward-looking social learners |
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| 2. |
Creator |
Author's name, affiliation |
Mira Frick; Department of Economics, Princeton University |
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| 2. |
Creator |
Author's name, affiliation |
Yuhta Ishii; Department of Economics, Pennsylvania State University |
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| 3. |
Subject |
Subject(s) |
Innovation adoption, social learning, informational free-riding, strategic experimentation, exponential bandits |
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| 3. |
Subject |
Subject classification |
D80, D83, O33 |
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| 4. |
Description |
Abstract |
We build a model studying the effect of an economy's potential for social learning on the adoption of innovations of uncertain quality. Assuming consumers are forward-looking (i.e.,\ recognize the value of waiting for information), we analyze how qualitative and quantitative features of the learning environment affect equilibrium adoption dynamics, welfare, and the speed of learning. Based on this, we show how differences in the learning environment translate into observable differences in adoption dynamics, suggesting a purely informational channel for two commonly documented adoption patterns---S-shaped and concave curves. We also identify environments that are subject to a saturation effect: Increased opportunities for social learning can slow down adoption and learning and do not increase consumer welfare, possibly even being harmful. |
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| 5. |
Publisher |
Organizing agency, location |
Econometric Society |
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| 6. |
Contributor |
Sponsor(s) |
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| 7. |
Date |
(YYYY-MM-DD) |
2024-11-14 |
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| 8. |
Type |
Status & genre |
Peer-reviewed Article |
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| 8. |
Type |
Type |
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| 9. |
Format |
File format |
pdf
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| 10. |
Identifier |
Universal Resource Indicator |
https://econtheory.org/ojs/index.php/te/article/view/20241505 |
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| 11. |
Source |
Journal/conference title; vol., no. (year) |
Theoretical Economics; Volume 19, Number 4 (November 2024) |
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| 12. |
Language |
English=en |
en |
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| 15. |
Rights |
Copyright and permissions |
Authors who publish in Theoretical Economics will release their articles under the Creative Commons Attribution-NonCommercial license. This license allows anyone to copy and distribute the article for non-commercial purposes provided that appropriate attribution is given. |