Informational Cascades with Continuous Action Spaces

The recent literature on informational cascades has nurtured the impression that cascades can occur only if the action space is coarser than the signal space. In particular, it is sometimes claimed that with continuous action spaces cascades are impossible. In this note we present a simple counter-example showing that this conclusion is not necessarily warranted.

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Year of publication:	1997-10-13
Authors:	Huck, Steffen ; Oechssler, Joerg
Institutions:	EconWPA
Subject:	herding \| cascades \| information

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Extent:	application/pdf application/postscript
Series:	Game Theory and Information.
Type of publication:	Book / Working Paper
Notes:	pages: 6 6 pages
Classification:	D8 - Information and Uncertainty
Source:	RePEc - Research Papers in Economics

Persistent link: https://ebvufind01.dmz1.zbw.eu/10005118606