This paper applies a social learning model to the optimal consumption rule of
Allen & Carroll (2001), and delivers convincing convergence dynamics towards the optimal
rule. These findings constitute a significant improvement regarding previous results in the
literature, both in terms of speed of convergence and parsimony of the learning model.
The learning model exhibits several appealing features: it is frugal, easy to apply to a
various range of learning objectives, and requires few procedures and little information.
Particular care is given to behavioural interpretation of the modelling assumptions in light
of evidence from the fields of psychology and social science. Our results highlight the need
to depart from the genetic metaphor, and account for intentional decision-making, based
on agents’ relative performances. By contrast, we show that convergence is strongly hindered
by exact imitation processes, or random exploration mechanisms, which are usually
assumed when modelling social learning behaviour. Our results suggest a method for
modelling bounded rationality, which could be interestingly tested in a wide range of economic
models with adaptive dynamics.
This paper applies a social learning model to the optimal consumption rule of
Allen & Carroll (2001), and delivers convincing convergence dynamics towards the optimal
rule. These findings constitute a significant improvement regarding previous results in the
literature, both in terms of speed of convergence and parsimony of the learning model.
The learning model exhibits several appealing features: it is frugal, easy to apply to a
various range of learning objectives, and requires few procedures and little information.
Particular care is given to behavioural interpretation of the modelling assumptions in light
of evidence from the fields of psychology and social science. Our results highlight the need
to depart from the genetic metaphor, and account for intentional decision-making, based
on agents’ relative performances. By contrast, we show that convergence is strongly hindered
by exact imitation processes, or random exploration mechanisms, which are usually
assumed when modelling social learning behaviour. Our results suggest a method for
modelling bounded rationality, which could be interestingly tested in a wide range of economic
models with adaptive dynamics.
Auteur(s)
Isabelle Salle1, 2
, Pascal Seppecher3, 4
1
GREThA -
Groupe de Recherche en Economie Théorique et Appliquée
( 27589 )
- Avenue Léon Duguit 33608 PESSAC
- France
Université de Bordeaux ( 259761 )
;
Centre National de la Recherche Scientifique UMR5113 ( 441569 )
2
CeNDEF -
Center for Nonlinear Dynamics in Economics and Finance
( 253763 )
- Roetersstraat 11, NL-1018 WB Amsterdam
- Pays-Bas
Universiteit van Amsterdam ( 146643 )
3
CEPN -
Centre d'Economie de l'Université Paris Nord
( 147976 )
- UFR de Sciences Economiques, Université Paris 13, 99 avenue Jean-Baptiste Clément, F-93430, Villetaneuse.
- France
Université Paris 13 ( 15786 )
;
Université Sorbonne Paris Cité ( 303171 )
;
Centre National de la Recherche Scientifique UMR7234 ( 441569 )
4
GREDEG -
Groupe de Recherche en Droit, Economie et Gestion
( 185786 )
- GREDEG - Bâtiment 2 - Campus Azur du CNRS - 250 rue Albert Einstein - CS 10269 - F
06905 SOPHIA ANTIPOLIS Cedex
- France
Centre National de la Recherche Scientifique UMR7321 ( 441569 )
;
Université Côte d'Azur UMR7321 ( 1039632 )
Langue du document
Anglais
Nom de la revue
Macroeconomic Dynamics
(ISSN : 1365-1005, ISSN électronique : 1469-8056)
Publié par Cambridge University Press (CUP)
Revue non référencée dans Sherpa-Romeo
D - Microeconomics/D.D8 - Information, Knowledge, and Uncertainty/D.D8.D83 - Search • Learning • Information and Knowledge • Communication • Belief • Unawareness
D - Microeconomics/D.D9 - Micro-Based Behavioral Economics/D.D9.D91 - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
C - Mathematical and Quantitative Methods/C.C6 - Mathematical Methods • Programming Models • Mathematical and Simulation Modeling/C.C6.C63 - Computational Techniques • Simulation Modeling
E - Macroeconomics and Monetary Economics/E.E2 - Consumption, Saving, Production, Investment, Labor Markets, and Informal Economy/E.E2.E21 - Consumption • Saving • Wealth