Non-Cooperativity in Bayesian Social Learning

Abstract

We describe a Bayesian model for social learning of a random variable in which agents might observe each other over a directed network. The outcomes produced are compared to those from a model in which observations occur randomly over a complete graph. In both cases we observe a nontrivial level of observation which maximizes learning, though individuals have strong incentive to defect from the societal optimum. The implications of such competition over information commons are discussed.

arXiv comment9 pages, 8 figures