Informational Herding as Experimentation Deja Vu.

We prove that the recently proposed informational herding models are but special cases of a standard single person experimentation model with myopia. We then re-interpret the incorrect herding outcome as a familiar failure of complete learning in an optimal experimentation problem.

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Year of publication:	1996
Authors:	Smith, L. ; Sorensen, P.
Institutions:	Economics Department, Massachusetts Institute of Technology (MIT)
Subject:	ECONOMETRICS \| MATHEMATICS \| EXPERIMENTATION \| MODELS

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Series:	Working papers.
Type of publication:	Book / Working Paper
Notes:	15 pages
Classification:	C00 - Mathematical and Quantitative Methods. General ; C90 - Design of Experiments. General ; C99 - Design of Experiments. Other
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005748998