eprintid: 22241
rev_number: 14
eprint_status: archive
userid: 2744
dir: disk0/00/02/22/41
datestamp: 2016-11-25 07:34:58
lastmod: 2016-11-28 08:28:07
status_changed: 2016-11-25 07:34:58
type: workingPaper
metadata_visibility: show
creators_name: Hedlund, Jonas
creators_name: Oyarzun, Carlos
title: Imitation in Heterogeneous Populations
subjects: ddc-330
divisions: i-181000
keywords: Imitation,heterogeneouspopulations,boundedrationality,Fubiniextension.
abstract: We study a boundedly rational model of imitation when payoff distributions of actions differ across types of individuals. Individuals observe others’ actions and payoffs, and a comparison signal. One of two inefficiencies always arises: (i) uniform adoption, i.e., all individuals choose the action that is optimal for one type but sub-optimal for the other, or (ii) dual incomplete learning, i.e., only a fraction of each type chooses its optimal action. Which one occurs depends on the composition of the population and how critical the choice is for different types of individuals. In an application, we show that a monopolist serving a population of boundedly rational consumers cannot fully extract the surplus of high-valuation consumers, but can sell to consumers who do not value the good.
date: 2016-11
id_scheme: DOI
id_number: 10.11588/heidok.00022241
schriftenreihe_cluster_id: sr-3
schriftenreihe_order: 0625
ppn_swb: 881668761
own_urn: urn:nbn:de:bsz:16-heidok-222416
language: eng
bibsort: HEDLUNDJONIMITATIONI201611
full_text_status: public
series: Discussion Paper Series, University of Heidelberg, Department of Economics
volume: 0625
place_of_pub: Heidelberg
pages: 46
citation:   Hedlund, Jonas ; Oyarzun, Carlos  (2016) Imitation in Heterogeneous Populations.  [Working paper]     
document_url: https://archiv.ub.uni-heidelberg.de/volltextserver/22241/1/hedlund_oyarzun_2016_dp625.pdf