International College of Economics and Finance

ICEF/LFE Research Seminar by Daniel Hauser (Aalto University)

On Thursday, October 18 at 4.40 pm, room 3211 (Shabolovka str. 26) ICEF and LFE held the Research Seminar.
Speaker: Daniel Hauser (Aalto University)
Theme: "Social Learning with Model Misspecification: A Framework and a Robustness Result" joint with J. Aislinn Bohren

Venue: Shabolovka st., 26, room 3211

Abstract: We explore how model misspecification affects long-run learning in a sequential social learning setting. An agent's type specifies her model of the world. Misspecified types have incorrect beliefs about the signal distribution, how other agents draw inference and/or others' preferences. Our main result is a simple criterion to characterize long-run learning outcomes that is straightforward to derive from primitives. Depending on the nature of the misspecification, we show that learning may be correct, incorrect or beliefs may not converge. We establish that the correctly specified model is robust -- agents with approximately correct models almost surely learn the true state.

ICEF seminars