Economic Theory

, Volume 17, Issue 1, pp 101–120

Conformism and diversity under social learning

  • Venkatesh Bala
  • Sanjeev Goyal
Research Articles

Summary. When there are competing technologies or products with unknown payoffs an important question is which technology will prevail and whether technologies with different payoffs can coexist in the long run. In this paper, we use a social learning model with local interactions to study this question. We show that the adoption of technologies as well as the prospects of conformism/diversity depend crucially on the nature of interaction between individuals and the heterogeneity of preferences in a society.

Keywords and Phrases:Social learning, Local interactions, Conformism/ diversity, Networks. 
JEL Classification Numbers:D83, L15, O30, Q16, R10. 

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Copyright information

© Springer-Verlag Berlin Heidelberg 2001

Authors and Affiliations

  • Venkatesh Bala
    • 1
  • Sanjeev Goyal
    • 2
  1. 1.Department of Economics, McGill University, 855 Sherbrooke West, Montreal, H3A 2T7, CANADA (e-mail: cA1198@aol.com) CA
  2. 2.Econometric Institute, Erasmus University, 3000 DR Rotterdam, THE NETHERLANDS (e-mail: goyal@few.eur.nl) NL

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