-rational inferences, drive herd behavior. In Experiment 1, unobserved, whose actions remain private, learn from the public actions made in … actions that contradict their high quality signals they herd more extensively than predicted by Bayes-rational herding …-Bayesian updating and informational misinferences are the two channels that drive excessive herding, while the strong (resp. mild …

"information cascade" in which later predictions match the early announcements. This paper reports an experiment in which private …

This experiment compares the price dynamics and bubble formation in an asset market with a price adjustment rule in …

become extremely and wrongly confident about the state of the world -- Social learning ; Non-Bayesian updating ; Herding …

substantial public information which increases the earnings of participants. In Experiment 2, participants have better …