(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.

Author(s)

Roland Bénabou, Nikhil Vellodi

Date of publication
  • 2024
Keywords JEL
D82 L11 L12
Keywords
  • Social learning
  • Experimentation
  • Dynamic disclosure
  • Consumer reviews
  • Time-inconsistent preferences
  • Motivated beliefs
Internal reference
  • PSE Working Papers n°2024-31
Pages
  • 9 p.
Version
  • 1