Publicité limitée de l'information et sur-réaction aux annonces lors des épisodes spéculatifs
The model of Morris and Shin  shows that imprecise public announcements can coordinate the actions of speculators far from the fundamental because of over-reaction to announcements. The strong focal potential of common knowledge is welfare damaging when it induces over-reaction to an imprecise public signal. However, laboratory experiments show that agents over-react to announcements, but not as much as what is theoretically predicted in models based on public information that generates common knowledge. This paper introduces the notion of limited degree of publicity, which seems to render better account for the actual degree of agents’ over-reaction. Classification JEL : C73, D82, F31
References listed on IDEAS
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- Camille Cornand & Frank Heinemann, 2008.
"Optimal Degree of Public Information Dissemination,"
Royal Economic Society, vol. 118(528), pages 718-742, 04.
- Camille Cornand & Frank Heinemann, 2004. "Optimal Degree of Public Information Dissemination," CESifo Working Paper Series 1353, CESifo Group Munich.
- Cornand, Camille & Heinemann, Frank, 2006. "Optimal Degree of Public Information Dissemination," Discussion Paper Series of SFB/TR 15 Governance and the Efficiency of Economic Systems 158, Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich.
- Camille Cornand & Frank Heinemann, 2008. "Optimal Degree of Public Information Dissemination," Post-Print halshs-00300211, HAL.
- Dorothea Kübler & Georg Weizsäcker, 2004. "Limited Depth of Reasoning and Failure of Cascade Formation in the Laboratory," Review of Economic Studies, Oxford University Press, vol. 71(2), pages 425-441.
- Kübler, Dorothea & Weizsäcker, Georg, 2000. "Limited depth of reasoning and failure of cascade formation in the laboratory," SFB 373 Discussion Papers 2001,3, Humboldt University of Berlin, Interdisciplinary Research Project 373: Quantification and Simulation of Economic Processes.
- Frank Heinemann & Rosemarie Nagel & Peter Ockenfels, 2004. "The Theory of Global Games on Test: Experimental Analysis of Coordination Games with Public and Private Information," Econometrica, Econometric Society, vol. 72(5), pages 1583-1599, 09.
- Nagel, Rosemarie, 1995. "Unraveling in Guessing Games: An Experimental Study," American Economic Review, American Economic Association, vol. 85(5), pages 1313-1326, December. Full references (including those not matched with items on IDEAS)
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