Does cascade behavior in information cascades reflect Bayesian updating? An experimental study
Updating behavior in cascade experiments is usually investigated on the basis of urn prediction. But urn predictions alone can only provide a very rough information on individual updating behavior. Therefore, we implement a BDM mechanism. Subjects have to submit maximum prices that they are willing to pay to participate in the prediction game. This enables us to study subjects' probabilty formation less crudely. The results show that in many situations herding occurs in accordance with the standard BHW model but cannot be explained neither by rational Bayesian updating nor by heuristics identi...ed in former cascade experiments.
|Date of creation:||2001|
|Date of revision:|
|Contact details of provider:|| Postal: Spandauer Str. 1,10178 Berlin|
Web page: http://www.wiwi.hu-berlin.de/
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.:
- Frédéric KOESSLER & Anthony ZIEGELMEYER, 2000. "Tie-breaking Rules and Informational Cascades: A Note," Working Papers of BETA 2000-09, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.
- Huck, Steffen & Oechssler, Jorg, 2000.
"Informational cascades in the laboratory: Do they occur for the right reasons?,"
Journal of Economic Psychology,
Elsevier, vol. 21(6), pages 661-671, December.
- Steffen Huck & Joerg Oechssler, 1999. "Informational cascades in the laboratory: Do they occur for the right reasons?," Experimental 9901001, EconWPA.
- Kraemer, Carlo & Nöth, Markus & Weber, Martin, 2000.
"Information Aggregation with Costly Information and Random Ordering: Experimental Evidence,"
Sonderforschungsbereich 504 Publications
00-35, Sonderforschungsbereich 504, Universität Mannheim;Sonderforschungsbereich 504, University of Mannheim.
- Kraemer, Carlo & Noth, Markus & Weber, Martin, 2006. "Information aggregation with costly information and random ordering: Experimental evidence," Journal of Economic Behavior & Organization, Elsevier, vol. 59(3), pages 423-432, March.
- Kraemer, Carlo & Nöth, Markus & Weber, Martin, 2000. "Information aggregation with costly information and random ordering : experimental evidence," Papers 00-35, Sonderforschungsbreich 504.
When requesting a correction, please mention this item's handle: RePEc:zbw:sfb373:200132. 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: (ZBW - German National Library of Economics)
If references are entirely missing, you can add them using this form.