The impact of observation and action errors on informational cascades

@article{Le2014TheIO,
  title={The impact of observation and action errors on informational cascades},
  author={Tho Ngoc Le and Vijay G. Subramanian and Randall Berry},
  journal={53rd IEEE Conference on Decision and Control},
  year={2014},
  pages={1917-1922}
}
In models of observational learning among Bayesian agents, informational cascades can result, in which agents ignore their private information and blindly follow the actions of other agents. This paper considers the impacts of two types of errors in such models: action errors, where agents occasionally choose sub-optimal actions and observation errors, where agents observe the action of another agent incorrectly. We investigate and compare the impact of these two types of errors on the agents… CONTINUE READING