A simple note on Herd Behaviour
In his "Simple model of herd behaviour", Banerjee (1992) shows that - in a sequential game - if the first two players have chosen the same action, player 3 and all subsequent players will ignore his/her own information and start a herd, an irreversible one. In this paper we analyse the role played by the tie-breaking assumptions in reaching the equilibrium. We showed that: players' strategies are parameter dependent; an incorrect herd could be reversed; a correct herd is irreversible.
|Date of creation:||Feb 2007|
|Date of revision:||Feb 2007|
|Contact details of provider:|| Postal: |
Web page: http://www.dse.uniba.it
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Fiore, Annamaria & Morone, Andrea, 2007.
"A Simple Note on Informational Cascades,"
Economics Discussion Papers
2007-21, Kiel Institute for the World Economy.
- Fiore, Annamaria & Morone, Andrea, 2008. "A Simple Note on Informational Cascades," Economics - The Open-Access, Open-Assessment E-Journal, Kiel Institute for the World Economy, vol. 2, pages 1-21.
- Sushil Bikhchandani & David Hirshleifer & Ivo Welch, 2010.
"A theory of Fads, Fashion, Custom and cultural change as informational Cascades,"
Levine's Working Paper Archive
1193, David K. Levine.
- Bikhchandani, Sushil & Hirshleifer, David & Welch, Ivo, 1992. "A Theory of Fads, Fashion, Custom, and Cultural Change in Informational Cascades," Journal of Political Economy, University of Chicago Press, vol. 100(5), pages 992-1026, October.
- Andrea Morone, 2008.
"Financial markets in the laboratory: an experimental analysis of some stylized facts,"
Taylor & Francis Journals, vol. 8(5), pages 513-532.
- Andrea Morone, 2005. "Financial Market in the Laboratory, an Experimental Analysis of some Stylized Facts," Papers on Strategic Interaction 2005-27, Max Planck Institute of Economics, Strategic Interaction Group.
- John D. Hey & Andrea Morone, 2004. "Do Markets Drive Out Lemmings-or Vice Versa?," Economica, London School of Economics and Political Science, vol. 71(284), pages 637-659, November.
When requesting a correction, please mention this item's handle: RePEc:bai:series:wp0013. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ruggiero Marco Paolillo)The email address of this maintainer does not seem to be valid anymore. Please ask Ruggiero Marco Paolillo to update the entry or send us the correct address
If references are entirely missing, you can add them using this form.