We explore a simple twist of the canonical binary-state observational learning model wherein signal precision is common to all players but is unknown. We characterize the condition when an information cascade occurs and show that it is less likely to occur in our model compared with Bikhchandani...

We investigate the role of consumer herding and learning on the design of incentives for online customer reviews. Herding occurs when consumers are drawn to a product that appears to be popular because it has garnered a large number of reviews. Learning occurs when consumers infer product...

This paper attempts to research in two parts, the first part aims to study the Herding Behavior in the sectors of the Egyptian Stock Exchange, when the second part aims to study the factors that affect the Herding Behavior according to the identification of those factors. Factors based on the...

According to the widely known 'culture of honor' hypothesis from social psychology, traditional herding practices are believed to have generated a value system that is conducive to revenge-taking and violence. We test this idea at a global scale using a combination of ethnographic records,...

The paper presents a new meta data set covering 13 experiments on the social learning games by Bikhchandani, Hirshleifer, and Welch (1992). The large amount of data makes it possible to estimate the empirically optimal action for a large variety of decision situations and ask about the economic...

This study examines the effect of Herding in different states (low, high and extreme volatility) in Tehran Stock Exchange during the years 2009-2013 using Chang et al. (2000) and Balcilar et al. (2013) models. In this survey, herding is tested under 3 market regimes. The results don't show...

Oregon has one of the higher adult vaccination rates in the US (just over 70% of adults 18+). This accomplishment is not to be scoffed at. Yet 20 percent of Oregonians have no plans to vaccinate, thus more work is needed. On June 30, Gov. Brown lifted almost all restrictions put in place at the...

Policymakers often express concern that herding by financial market participants destabilizes markets and increases the fragility of the financial system. This paper provides an overview of the recent theoretical and empirical research on herd behavior in financial markets. It addresses the...

In this paper, we estimate an agent-based model (ABM) to investigate herding behaviors in the formation of investor sentiment. We formalize a simple opinion dynamics model in a social network framework and rely on a numerical method to estimate its parameters. We derive a sentiment proxy from...