Purpose The purpose of this paper is to uncover an institutional reason behind herding and the key to successful … perception alignment hypothesis (PAH), which is based on a large number of empirical episodes. Extensive empirical and … conceptual framework. Findings The proposed PAH can explain some herding episodes that were generated for the purpose of …

Most real world situations that are susceptible to herding are also characterized by direct payoff externalities. Yet …, the bulk of the theoretical and experimental literature on herding has focused on pure informational externalities. In … effects, first-mover advantage, etc.) in a standard information-based herding model. Our results are based on an internet …