Risk perception with imperfect information and social interactions: Understanding group polarization

Autor:	Jacques Pelletan
Rok vydání:	2021
Předmět:	Risk perception Microeconomics Economics and Econometrics Process (engineering) Group (mathematics) Phenomenon Polarization (politics) Perfect information Economics Information cascade Inefficiency
Zdroj:	Bulletin of Economic Research. 73:688-703
ISSN:	1467-8586 0307-3378
DOI:	10.1111/boer.12272
Popis:	This article examines the group polarization process when agents are faced with a risk for which the probability of occurrence is not perfectly known. First, we show information destruction through an informational cascade phenomenon. Then, we analyze how this inefficiency is amplified if individuals with the same type of risk‐related behavior group together. Two extensions are detailed: consideration of the possibility that individual agents participate in more than one group, and introduction of agents highly confident in their own information, enabling cascades to be "broken." Under conditions, the behavior of these agents, costly at the individual level, is collectively efficient.
Databáze:	OpenAIRE
Externí odkaz:	https://explore.openaire.eu/search/publication?articleId=doi_________::ef5e1718a9839c06e28bac98c55fbe33 https://doi.org/10.1111/boer.12272 Zobrazit plný text záznamu