{"title":"Private signals and fast product adoption under incomplete information","authors":"","doi":"10.1016/j.geb.2024.08.009","DOIUrl":null,"url":null,"abstract":"<div><p>This paper investigates the dynamics of product adoption under incomplete information regarding the product quality. A new agent observes a small sample of product choices within the population and receives a noisy private signal regarding the realized state of the world. Using simple heuristics, the agent estimates both the product quality and the distribution of product choices in the population. The agent then chooses a product that is a best response to this estimate. We show that fast adoption of the optimal product in the population occurs if and only if the strength of the private signal exceeds a certain threshold.</p></div>","PeriodicalId":48291,"journal":{"name":"Games and Economic Behavior","volume":null,"pages":null},"PeriodicalIF":1.0000,"publicationDate":"2024-08-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Games and Economic Behavior","FirstCategoryId":"96","ListUrlMain":"https://www.sciencedirect.com/science/article/pii/S0899825624001167","RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q3","JCRName":"ECONOMICS","Score":null,"Total":0}
引用次数: 0
Abstract
This paper investigates the dynamics of product adoption under incomplete information regarding the product quality. A new agent observes a small sample of product choices within the population and receives a noisy private signal regarding the realized state of the world. Using simple heuristics, the agent estimates both the product quality and the distribution of product choices in the population. The agent then chooses a product that is a best response to this estimate. We show that fast adoption of the optimal product in the population occurs if and only if the strength of the private signal exceeds a certain threshold.
期刊介绍：
Games and Economic Behavior facilitates cross-fertilization between theories and applications of game theoretic reasoning. It consistently attracts the best quality and most creative papers in interdisciplinary studies within the social, biological, and mathematical sciences. Most readers recognize it as the leading journal in game theory. Research Areas Include: • Game theory • Economics • Political science • Biology • Computer science • Mathematics • Psychology
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