Bayesian Learning in Social Networks

@inproceedings{Ozdaglar2008BayesianLI,
  title={Bayesian Learning in Social Networks},
  author={Asu Ozdaglar and Daron Acemoglu and Munther A. Dahleh and Ilan Lobel},
  year={2008}
}
We study the (perfect Bayesian) equilibrium of a sequential learning model over a general social network. Each individual receives a signal about the underlying state of the world, observes the past actions of a stochastically generated neighbourhood of individuals, and chooses one of two possible actions. The stochastic process generating the neighbourhoods defines the network topology. We characterize pure strategy equilibria for arbitrary stochastic and deterministic social networks and… CONTINUE READING
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