Gualdi, S.; De Martino, A. - In: Physica A: Statistical Mechanics and its Applications 389 (2010) 2, pp. 323-329
We investigate a toy model of inductive interacting agents aiming to forecast a continuous, exogenous random variable E. Private information on E is spread heterogeneously across agents. Herding turns out to be the preferred forecasting mechanism when heterogeneity is maximal. However in such...