Rational Groupthink | Zendy

Matan Harel | Zendy; Elchanan Mossel | Zendy; Philipp Strack | Zendy; Omer Tamuz | Zendy

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Rational Groupthink

Author(s) -

Matan Harel,

Elchanan Mossel,

Philipp Strack,

Omer Tamuz

Publication year - 2020

Publication title -

the quarterly journal of economics

Language(s) - English

Resource type - Journals

SCImago Journal Rank - 34.573

H-Index - 259

eISSN - 1531-4650

pISSN - 0033-5533

DOI - 10.1093/qje/qjaa026

Subject(s) - private information retrieval , action (physics) , signal (programming language) , group (periodic table) , psychology , rational number , computer science , social psychology , mathematical economics , artificial intelligence , economics , mathematics , pure mathematics , computer security , physics , quantum mechanics , programming language

We study how long-lived rational agents learn from repeatedly observing a private signal and each others’ actions. With normal signals, a group of any size learns more slowly than just four agents who directly observe each others’ private signals in each period. Similar results apply to general signal structures. We identify rational groupthink—in which agents ignore their private signals and choose the same action for long periods of time—as the cause of this failure of information aggregation.

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