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| Alevy, Jonathan E.; Haigh, Michael S.; List, John A.. |
| In settings where there is imperfect information about an underlying state of nature, but where inferences are made sequentially and are publicly observable, information cascades can lead to rational herding. Cascade phenomena may be seen in a variety of areas including technology adoption, financial market behavior, as well as in social processes such as mate selection or fads and fashions. Theories of rational herding have found a natural testing ground in experimental environments since the character of private and public information can be readily controlled. In previous experimental studies, behavior consistent with Bayesian benchmarks has been observed in simple contexts, but there are substantial reductions in experimental environments that... |
| Tipo: Conference Paper or Presentation |
Palavras-chave: Marketing. |
| Ano: 2003 |
URL: http://purl.umn.edu/18976 |
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| Alevy, Jonathan E.; Haigh, Michael S.; List, John A.. |
| In settings characterized by imperfect information about an underlying state of nature, but where inferences are made sequentially and are publicly observable, decisions may yield a "cascade" in which everyone herds on a single choice. While cascades potentially play a role in a variety of settings, from technology adoption to social processes such as mate selection, understanding cascade phenomena is imperative for financial markets. Previous empirical efforts studying cascade formation have used both naturally occurring data and laboratory experiments. In this paper, we combine one of the attractive elements of each line of research-observation of market professionals in a controlled environment-to push the investigation of cascade behavior into... |
| Tipo: Working or Discussion Paper |
Palavras-chave: Financial Economics. |
| Ano: 2003 |
URL: http://purl.umn.edu/28608 |
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