Informational Herding and Optimal Experientation.

We explore the constrainned efficient observational learning model - as when individuals care about successors, or are so induced by an informationally- constrained social planner. We find that when the herding externality is correctly internali zed in this fashion, incorrect herds still obtain.

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Year of publication:	1997
Authors:	Smith, L. ; Sorensen, P.
Institutions:	Economics Department, Massachusetts Institute of Technology (MIT)
Subject:	DECISION MAKING \| ECONOMIC MODELS

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Series:	Working papers.
Type of publication:	Book / Working Paper
Notes:	22 pages
Classification:	D80 - Information and Uncertainty. General ; D81 - Criteria for Decision-Making under Risk and Uncertainty
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005587312