Theory seminar presented by Aislinn Bohren (CMU)
12 May 2020, 4:30 pm–5:45 pm

"Misinterpreting Social Outcomes and Information Campaigns"
Event Information
Open to
- All
Organiser
-
Nikita Roketskiy
Location
-
LG10056: Bentham House4-8 Endsleigh GardensLondonWC1H 0EGUnited Kingdom
Abstract :This paper explores learning in a setting with social perception biases. Individuals learn from others’ outcomes but have a misspecified model of their preferences. When individuals systematically overestimate the similarity between their own preferences and the preferences of others -- exhibiting the false consensus effect -- this can lead to incorrect learning, while when individuals systematically underestimate this similarity -- exhibiting pluralistic ignorance -- this can prevent beliefs from converging. We explore how information campaigns — releasing (costly) information about the state — can counteract these inefficient choices. We show that the duration -- temporary or permanent -- and the target -- correct inefficient action choices or reinforce efficient action choices -- of the optimal information campaign depend crucially on the form of misspecification.
About the Speaker
Aislinn Bohren
at CMU