Guarino, Antonio; Huck, Steffen; Jeitschko, Thomas D. - Abteilung "Marktprozesse und Steuerung", … - 2004
We study the behavior of experimental subjects who have to make a sequence of risky investment decisions in the presence of network externalities. Subjects follow a simple heuristic – investing after positive experiences and reducing their propensity to invest after a failure. This result...