Herding, Social Preferences and (Non-) Conformity

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Herding, Social Preferences and (Non-) Conformity

Author Info

Luca Corazzini
Ben Greiner

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Abstract

We study the role of social preferences and conformity in explaining herding behavior in anonymous risky environments. In an experiment similar to information cascade settings, but with no private information, we find no evidence for conformity. On the contrary, we observe a significant amount of non-conforming behavior, which cannot be attributed to errors.

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Publisher Info
Paper provided by University of Cologne, Department of Economics in its series Working Paper Series in Economics with number 21.

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Date of creation: 16 Nov 2005
Date of revision: 24 Jan 2007
Publication status: Forthcoming Economics Letters
Handle: RePEc:kls:series:0021

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Article
- Corazzini, Luca & Greiner, Ben, 2007. "Herding, social preferences and (non-)conformity," Economics Letters, Elsevier, vol. 97(1), pages 74-80, October. [Downloadable!] (restricted)

Find related papers by JEL classification:
C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty

This paper has been announced in the following NEP Reports:

NEP-ALL-2005-12-01 (All new papers)
NEP-CBE-2005-12-01 (Cognitive & Behavioural Economics)
NEP-EXP-2005-12-01 (Experimental Economics)

References listed on IDEAS
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Other versions:
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Other versions:
- Mathias Drehmann & Joerg Oechssler & Andreas Roider, 2003. "Herding and Contrarian Behavior in Financial Markets: An Internet Experiment," University of California at Santa Barbara, Economics Working Paper Series 18-03, Department of Economics, UC Santa Barbara. [Downloadable!]
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