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What Causes Herding : Information Cascade or Search Cost?

LIn, William T.; Tsai, Shih-Chuan; Sun, David S. - 2013

We analyze in this study cause of herding in a stock market. Information cascades have often been considered as a … including an alternative theory based on search cost of investors, in addition to the information cascade argument. Specifically …, previous works used data with daily or lower frequency based on a herding measure of Lakonishok, Shleifer, and Vishny (1992 …

Persistent link: https://www.econbiz.de/10014198780

Adaptive social learning

March, Christoph - 2016

The paper investigates social-learning when the information structure is not commonly known. Individuals repeatedly interact in social-learning settings with distinct information structures. In each round of interaction, they use their experience gained in past rounds to draw inferences from...

Persistent link: https://www.econbiz.de/10011434567

Information diffusion in networks through social learning

Lobel, Ilan; Sadler, Evan - In: Theoretical economics : TE ; an open access journal in … 10 (2015) 3, pp. 807-851

We study perfect Bayesian equilibria of a sequential social learning model in which agents in a network learn about an underlying state by observing neighbors' choices. In contrast with prior work, we do not assume that the agents' sets of neighbors are mutually independent. We introduce a new...

Persistent link: https://www.econbiz.de/10011673206

Fake News, Information Herds, Cascades and Economic Knowledge

Butkovich, Lazarina - 2018

possible uses of economics and game theory for understanding the phenomenon. Public news is viewed as an aggregation of …

Persistent link: https://www.econbiz.de/10012914321

Ultrametricity of Information Cascades

Ghosh, Rumi; Huberman, Bernardo A. - 2014

Whether it is the inter-arrival time between two consecutive votes on a story on Reddit or the comments on a video shared on Youtube, there is always a hierarchy of time scales in information propagation. One vote/comment might occur almost simultaneously with the previous, whereas another...

Persistent link: https://www.econbiz.de/10014152921

Informational Herding as Experimentation Deja Vu

Smith, Lones; Sorensen, Peter Norman - 2008

We prove that the recently proposed informational herding models are but special cases of a standard single person … experimentation model with myopia. We then re-interpret the incorrect herding outcome as a familiar failure of complete learning in a … herding externality in this fashion, incorrect herds and incomplete learning still obtain. We note that this outcome can be …

Persistent link: https://www.econbiz.de/10014208411

Robust Information Aggregation

Veiel, Rafael - 2022

Consider an investment problem with strategic complementarities and incomplete information about returns. This paper shows that investors aggregate their private information in equilibrium by trading a token and observing its market price over multiple rounds before making the investment...

Persistent link: https://www.econbiz.de/10014239114

Correlated Information Cascades

Wu, Jiemai - 2021

This paper extends the model of information cascade (Bikhchandani, Hirshleifer, and Welch, 1992) by introducing two correlated queues of players. By comparing the equilibrium outcomes of the two-queue game with the benchmark one-queue game, this paper finds out that the observability of...

Persistent link: https://www.econbiz.de/10014361607

Interacting Information Cascades : On the Movement of Conventions between Groups

Fisher, James - 2017

When a decision maker is a member of multiple social groups, her actions may cause information to to spill over from one group to another. We study the nature of these spillovers in an observational learning game where two groups interact via a common player, and where conventions emerge when...

Persistent link: https://www.econbiz.de/10012968440

Do individuals recognize cascade behavior of others? : an experimental study

Grebe, Tim; Schmid, Julia; Stiehler, Andreas - 2006

In an information cascade experiment participants are confronted with artificial predecessors predicting in line with the BHW model (Bikchandani et al., 1992). Using the BDM (Becker et al., 1964) mechanism we study participants' probability perceptions based on maximum prices for participating...

Persistent link: https://www.econbiz.de/10010343945