Signal Accuracy and Informational Cascades
AbstractWe extend the Bikhchandani, Hirshleifer and Welch (1992) informational cascade framework to allow for asymmetric signal accuracy. Simulations demonstrate that even small departures from symmetry may lead to non-monotonic effects of signal accuracy on the likelihood of an inefficient cascade.
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Bibliographic InfoPaper provided by School Of Economics, University College Dublin in its series Working Papers with number 200620.
Length: 13 pages
Date of creation: 28 Nov 2006
Date of revision:
Learning; Herding; Signal Precision;
Other versions of this item:
- D80 - Microeconomics - - Information, Knowledge, and Uncertainty - - - General
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