Social learning involves individuals learning from the behavior of others and may lead to spectacular outcomes such as herding, fads, frenzies, crashes, and booms. Providing a synthesis of the theoretical literature of the last ten years, Christophe Chamley demonstrates how these pathologies may occur in a society of rational individuals. His book provides informal as well as technical analyses for readers interested in social behavior, and more advanced researchers in economics, finance, and other social sciences. A key feature is the inclusion of exercises in each chapter, with proofs written out for students.

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This book is the first in the exciting new field of social learning. It provides a synthesis of the theoretical literature of the last ten years with some empirical applications. Social learning is about individuals learning from the behavior of others and may lead to spectacular outcomes such as herding, fads, frenzies, crashes, and booms. The book shows how these pathologies may occur in a society of rational individuals. In various contexts all individuals in a society may learn more if each person does not use rational observations of others' behavior. The book provides both informal and technical analyses for readers interested in social behavior, and more advanced researchers in economics, finance, and other social sciences.

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