Investigating the effect of changes in Signals, Noise and Agent Types in Cascade Models
Smith and SÃ¸renson (2002) depart from Bikhchandani, Hirshleifer and Welshâ€™s (1999) herding framework in three ways; non-discrete signals, noise and multiple rational agent types. They refer to the standard model of a single type with no noise as a â€œherdingâ€ model, and differentiate themselves by referring to the more general model as a â€œcascade.â€ They find that differing preferences lead to â€œconfounded learningâ€ whereby an incorrect equilibrium can arise regardless of the accuracy of the signal space, due to alternate actions taken due to preferences. In this paper we break down the three alterations from the BHW (1999) model, and analyze through agent based techniques the effect that each one has on the outcome, in an effort to determine which of the three different specifications has the greatest impact on herding and learning in the cascade model.
To our knowledge, this item is not available for
download. To find whether it is available, there are three
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
When requesting a correction, please mention this item's handle: RePEc:sce:scecf5:296. 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: (Christopher F. Baum)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.