We study reputational herding in financial markets in a laboratory experiment. In the spirit of Dasgupta and Prat (2008 …

We derive microscopic foundations for a well-known probabilistic herding model in the agent-based finance literature …

This paper employs numerical simulations of the Park and Sabourian (2011) herd model to derive new theory …-based predictions for how information risk and market stress influence aggregate herding intensity. We test these predictions … sell herding. The model also explains why buy, not sell, herding is more pronounced during the financial crisis. …

fundamental trading rules to determine their orders. Volatility clustering arises in our model due to speculators' herding … financial markets, technical and fundamental analysis, heterogeneity, herding behavior, method of simulated moments …