Technology Diffusion by Learning from Neighbours Export

@article{Chatterjee:2004, abstract = {In this paper, we consider a model of social learning in a population of myopic, memoryless agents. The agents are placed at integer points on an infinite line. Each time period, they perform experiments with one of two technologies, then each observes the outcomes and technology choices of the two adjacent agents as well as his own outcome. Two learning rules are considered; it is shown that under the first, where an agent changes his technology only if he has had a failure (a bad outcome), the society converges with probability 1 to the better technology. In the other, where agents switch on the basis of the neighbourhood averages, convergence occurs if the better technology is sufficiently better. The results provide a surprisingly optimistic conclusion about the diffusion of the better technology through imitation, even under the assumption of extremely boundedly rational agents.}, author = {Chatterjee, Kalyan and Xu, Susan H.}, citeulike-article-id = {5943789}, citeulike-linkout-0 = {http://dx.doi.org/10.2307/1428457}, citeulike-linkout-1 = {http://www.jstor.org/stable/1428457}, doi = {10.2307/1428457}, issn = {00018678}, journal = {Advances in Applied Probability}, keywords = {diffusion, geography, social\_learning}, number = {2}, pages = {355--376}, posted-at = {2009-10-15 13:24:58}, priority = {2}, publisher = {Applied Probability Trust}, title = {Technology Diffusion by Learning from Neighbours}, url = {http://dx.doi.org/10.2307/1428457}, volume = {36}, year = {2004} }

TY - JOUR ID - Chatterjee:2004 L3 - citeulike-article-id:5943789 N2 - In this paper, we consider a model of social learning in a population of myopic, memoryless agents. The agents are placed at integer points on an infinite line. Each time period, they perform experiments with one of two technologies, then each observes the outcomes and technology choices of the two adjacent agents as well as his own outcome. Two learning rules are considered; it is shown that under the first, where an agent changes his technology only if he has had a failure (a bad outcome), the society converges with probability 1 to the better technology. In the other, where agents switch on the basis of the neighbourhood averages, convergence occurs if the better technology is sufficiently better. The results provide a surprisingly optimistic conclusion about the diffusion of the better technology through imitation, even under the assumption of extremely boundedly rational agents. IS - 2 JF - Advances in Applied Probability SN - 00018678 EP - 376 TI - Technology Diffusion by Learning from Neighbours PB - Applied Probability Trust VL - 36 SP - 355 KW - diffusion KW - geography KW - social_learning AU - Chatterjee, Kalyan AU - Xu, Susan PY - 2004/// UR - http://dx.doi.org/10.2307/1428457 ER -