Is playing alone in the darkness sufficient to prevent informational cascades?
AbstractSeminal models of herd behaviour and informational cascades point out the existence of information negative externalities, and propose to destroy information in order to achieve social improvements. Although in the last years many features of herd behaviour and informational cascades have been studied, this particular aspect has never been extensively analysed. In this article we investigate, both theoretically and experimentally, whether and to which extent destroying information can improve welfare.
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Bibliographic InfoPaper provided by Max Planck Institute of Economics, Strategic Interaction Group in its series Papers on Strategic Interaction with number 2005-09.
Length: 18 pages
Date of creation: Oct 2005
Date of revision:
Other versions of this item:
- Annamaria Fiore & Andrea Morone, 2005. "Is playing alone in the darkness sufficient to prevent informational cascades?," Experimental 0503002, EconWPA.
- C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
This paper has been announced in the following NEP Reports:
- NEP-ALL-2005-04-17 (All new papers)
- NEP-EXP-2005-04-17 (Experimental Economics)
- NEP-SEA-2005-04-18 (South East Asia)
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