Informational Cascades with Continuous Action Spaces
AbstractThe recent literature on informational cascades has nurtured the impression that cascades can occur only if the action space is coarser than the signal space. In particular, it is sometimes claimed that with continuous action spaces cascades are impossible. In this note we present a simple counter-example showing that this conclusion is not necessarily warranted.
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Bibliographic InfoPaper provided by EconWPA in its series Game Theory and Information with number 9710002.
Length: 6 pages
Date of creation: 13 Oct 1997
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Note: pages: 6
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herding; cascades; information;
Other versions of this item:
- Huck, Steffen & Oechssler, Jorg, 1998. "Informational cascades with continuous action spaces," Economics Letters, Elsevier, vol. 60(2), pages 163-166, August.
- D8 - Microeconomics - - Information, Knowledge, and Uncertainty
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