Information Percolation
Speaker:
Gustavo Manso, University of California Berkeley
Date and Time:
Tuesday, May 25, 2010 - 2:30pm to 3:10pm
Location:
Fields Institute, Room 230
Abstract:
We study the "percolation" of information of common interest through a large market as agents encounter and reveal information to each other over time. We provide an explicit solution for the dynamics of the cross-sectional distribution of posterior beliefs, and calculate its rate of convergence to a common posterior. We also study how market segmentation, learning through public signals, and endogenous search intensities affect information percolation.