Template-Type:ReDIF-Paper 1.0  
Title:Which one should I imitate?
Author-Name:Schlag, Karl H.
Classification-JEL:C72, C79
Keywords:social learning, multi-armed bandit, imitation, payoff increasing, proportional imitaiton rule, aggregate
	monotone dynamic.
Abstract:We consider the model of social learning by Schlag (1996). Individuals must repeatedly choose an action in a
	multi-armed bandit. We assume that each indivdiual observes the outcomes of two other individuals' choices before
	her own next choice must be made -- the original model only allows for one observation. Selection of optimal
	behavior yields a variant of the proportional imitation rule -- the optimal rule based on one observation. When each
	individual uses this rule then the adaptation of actions in an infinite population follows an aggregate monotone
	dynamic.
Length: pages
Creation-Date: 1996-03
Revision-Date: 
Handle: RePEc:bon:bonsfb:365
File-URL: http://www.wiwi.uni-bonn.de/bgsepapers/bonsfb/bonsfb365.pdf
File-Format: application/pdf
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