[iRisk Research Seminar] ‘Why Don’t You Take a Leaf Out of Her Book? An Experiment on Social Search’
Thursday, March 6th, 2025
2pm – 3pm in Lille (E033) & on Zoom
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Speaker:
Michela BOLDRINI, Bocconi University, Italy
ABSTRACT
Social information, defined as the choices and experiences of other agents, is easily accessible through direct observation, communication, and social networks. We propose an experimental analysis to investigate the impact of social learning on individuals’ acquisition of information before making a choice and how behavioral biases and the perceived reliability of the information source affect this process.
We use a stylized version of the canonical sequential search model and solve it with and without social information. Agents without social information act in isolation, while those with social information observe a peer’s choice but not their search process. We aim to explore the effects of social information on search behavior, the influence of the perceived quality of the information source, and the potential of
alternative institutions to counteract behavioral biases and restore the benefits of social information. Our results can guide the development of policies that enhance the efficiency of decision-making processes by optimizing the use of social information.