European Economic Review · 1996 · 221 citations · 13 references
Social SciencesEconomicsBehavioral EconomicsGame TheoryMicroeconomicsAsymmetric InformationBehavioral Game TheoryInformation AsymmetryInformation EconomicsNash EquilibriumSocial LearningInformation CascadesLearning In GamesLearning Under Asymmetric InformationLearning Under UncertaintyLearning With Imperfect Information
Models of herd behavior and informational cascades often make strong assumptions about the information available to agents, the nature of the choices being made, the timing of decisions, and the symmetry of equilibrium. This note considers the robustness of some results from the literature on social learning and argues that the inefficiency of equilibrium in the presence of informational externalities and strategic delay may be the most important lesson of all.
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A Simple Model of Herd Behavior
Abhijit Banerjee · The Quarterly Journal of Economics · 1992 · 6.6K citations