(Pro-)Social Learning and Strategic Disclosure
Pre-print, Working paper: We study a sequential experimentation model with endogenous feedback. Agents choose between a safe and risky action, the latter generating stochastic rewards. When making this choice, each agent is selfishly motivated (myopic). However, agents can disclose their experiences to a public record, and when doing so are pro-socially motivated (forward-looking). Disclosure is both polarized (only extreme signals are disclosed) and positively biased (no feedback is bad news). The extent of disclosure is non-monotone in prior uncertainty. Subsidizing disclosure costs can paradoxically lead to less disclosure, but more experimentation.
Keywords JEL
Keywords
- Social learning
- Experimentation
- Dynamic disclosure
- Consumer reviews
- Time-inconsistent preferences
- Motivated beliefs
Internal reference
- PSE Working Papers n°2024-31
Pages
- 9 p.
URL of the HAL notice
Version
- 1