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A shared identity promotes herding in an information cascade game

Author

Listed:
  • Sebastian Berger

    (University of Bern)

  • Christoph Feldhaus

    (University of Münster)

  • Axel Ockenfels

    (University of Cologne)

Abstract

Our research addresses the effect of shared vs. mixed group identities in an information cascade game. We vary whether subjects always choose after a decision maker who shares the same identity or after a decision maker with a different identity. We find that subjects’ inclination to follow their predecessor is stronger in groups uniquely consisting of ingroup members compared to mixed groups. We relate this result to recent social cognition research.

Suggested Citation

  • Sebastian Berger & Christoph Feldhaus & Axel Ockenfels, 2018. "A shared identity promotes herding in an information cascade game," Journal of the Economic Science Association, Springer;Economic Science Association, vol. 4(1), pages 63-72, July.
    • Handle: RePEc:spr:jesaex:v:4:y:2018:i:1:d:10.1007_s40881-018-0050-9
    DOI: 10.1007/s40881-018-0050-9
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    References listed on IDEAS

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    Cited by:

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    2. Insler, Michael & Rahman, Ahmed S. & Smith, Katherine, 2021. "Tracking the Herd with a Shotgun — Why Do Peers Influence College Major Selection?," IZA Discussion Papers 14412, Institute of Labor Economics (IZA).
    3. Wenbo Zou & Xue Xu, 2023. "Ingroup bias in a social learning experiment," Experimental Economics, Springer;Economic Science Association, vol. 26(1), pages 27-54, March.
    4. Xiao, Qin & Yan, Meilan & Zhang, Dalu, 2023. "Commodity market financialization, herding and signals: An asymmetric GARCH R-vine copula approach," International Review of Financial Analysis, Elsevier, vol. 89(C).
    5. Zakharov, Alexei & Bondarenko, Oxana, 2021. "Social status and social learning," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 90(C).
    6. Marwan Mohamed Abdeldayem & Saeed Hameed Al Dulaimi, 2020. "Investors’ herd behavior related to the pandemic-risk reflected on the GCC stock markets," Zbornik radova Ekonomskog fakulteta u Rijeci/Proceedings of Rijeka Faculty of Economics, University of Rijeka, Faculty of Economics and Business, vol. 38(2), pages 563-584.
    7. March, Christoph & Ziegelmeyer, Anthony, 2020. "Altruistic observational learning," Journal of Economic Theory, Elsevier, vol. 190(C).
    8. Michael Färber & Melissa Coutinho & Shuzhou Yuan, 2023. "Biases in scholarly recommender systems: impact, prevalence, and mitigation," Scientometrics, Springer;Akadémiai Kiadó, vol. 128(5), pages 2703-2736, May.

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    More about this item

    Keywords

    Information cascades; Herding; Group identity; Social cognition;
    All these keywords.

    JEL classification:

    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
    • D03 - Microeconomics - - General - - - Behavioral Microeconomics: Underlying Principles
    • D70 - Microeconomics - - Analysis of Collective Decision-Making - - - General
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • G02 - Financial Economics - - General - - - Behavioral Finance: Underlying Principles

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