Header

UZH-Logo

Maintenance Infos

Learning, public good provision, and the information trap


Berentsen, Aleksander; Brügger, Esther; Loertscher, Simon (2008). Learning, public good provision, and the information trap. Working paper series / Institute for Empirical Research in Economics No. 371, University of Zurich.

Abstract

We consider an economy where decision maker(s) do not know the true production function for a public good. By using Bayes rule they can learn from experience. We show that the economy may learn the truth, but that it may also converge to an inefficient policy where no further inference is possible so that the economy is stuck in an information trap. We also show that our results are robust with respect to experimentation.

Abstract

We consider an economy where decision maker(s) do not know the true production function for a public good. By using Bayes rule they can learn from experience. We show that the economy may learn the truth, but that it may also converge to an inefficient policy where no further inference is possible so that the economy is stuck in an information trap. We also show that our results are robust with respect to experimentation.

Statistics

Citations

2 citations in Web of Science®

Downloads

498 downloads since deposited on 29 Nov 2011
7 downloads since 12 months
Detailed statistics

Additional indexing

Item Type:Working Paper
Communities & Collections:03 Faculty of Economics > Department of Economics
Working Paper Series > Institute for Empirical Research in Economics (former)
Dewey Decimal Classification:330 Economics
Scope:Discipline-based scholarship (basic research)
Language:English
Date:May 2008
Deposited On:29 Nov 2011 22:47
Last Modified:06 Apr 2024 01:39
Series Name:Working paper series / Institute for Empirical Research in Economics
ISSN:1424-0459
OA Status:Green
Other Identification Number:merlin-id:5396