Advanced Search
MyIDEAS: Login to save this paper or follow this series

Do Individuals Recognize Cascade Behavior of Others? --An Experimental Study--

Contents:

Author Info

  • Andreas Stiehler
Registered author(s):

    Abstract

    In a cascade experiment subjects are confronted with artificial predecessors predicting in line with the BHW model (Bikhchandani, Hirshleifer and Welch, 1992). Using the BDM mechanism we study subjects' probability assignments based on price limits for participating in the prediction game. We find increasing price limits the more coinciding predictions of predecessors are observed and regardless of whether additional information is actually revealed by predecessors' predictions. Individual price patterns of more than two thirds of the participants indicate that cascade behavior of predecessors is not recognized.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: ftp://papers.econ.mpg.de/esi/discussionpapers/2003-02.pdf
    Download Restriction: no

    Bibliographic Info

    Paper provided by Max Planck Institute of Economics, Strategic Interaction Group in its series Papers on Strategic Interaction with number 2003-02.

    as in new window
    Length: 32 pages
    Date of creation:
    Date of revision:
    Handle: RePEc:esi:discus:2003-02

    Contact details of provider:
    Postal: Kahlaische Strasse 10, D-07745 Jena
    Phone: +49-3641-68 65
    Fax: +49-3641-68 69 90
    Web page: http://www.econ.mpg.de/
    More information through EDIRC

    Order Information:
    Email:
    Web: http://www.econ.mpg.de/english/research/ESI/discuss.php

    Related research

    Keywords: information cascades; Bayes' rule; decisions under risk and uncertainty; experimental economics;

    Find related papers by JEL classification:

    This paper has been announced in the following NEP Reports:

    References

    No references listed on IDEAS
    You can help add them by filling out this form.

    Citations

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:esi:discus:2003-02. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Karin Richter).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.