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Behavioral biases in endogenous-timing herding games: An experimental study

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  • Ivanov, Asen
  • Levin, Dan
  • Peck, James

Abstract

We experimentally study behavior in an endogenous-timing herding game. We find that subjects respond to their type and to observed investment activity in a sensible way, but there are also substantial departures from Nash Equilibrium. Some departures can be viewed as mere noise in decision making while other departures represent systematic biases reflecting subjects’ failure to appreciate subtle aspects of the game.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of Economic Behavior & Organization.

Volume (Year): 87 (2013)
Issue (Month): C ()
Pages: 25-34

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Handle: RePEc:eee:jeborg:v:87:y:2013:i:c:p:25-34

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Web page: http://www.elsevier.com/locate/jebo

Related research

Keywords: Endogenous-timing herding game; Biases; Experiment;

References

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  12. Dan Levin & James Peck, 2005. "Investment Dynamics with Common and Private Values," Levine's Bibliography 666156000000000607, UCLA Department of Economics.
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  17. McKelvey Richard D. & Palfrey Thomas R., 1995. "Quantal Response Equilibria for Normal Form Games," Games and Economic Behavior, Elsevier, vol. 10(1), pages 6-38, July.
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Cited by:
  1. Meub, Lukas & Proeger, Till & Hüning, Hendrik, 2013. "A comparison of endogenous and exogenous timing in a social learning experiment," Center for European, Governance and Economic Development Research Discussion Papers 167, University of Goettingen, Department of Economics.

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