Alfarano, Simone; Milakovic, Mishael - In: Journal of Economic Dynamics and Control 33 (2009) 1, pp. 78-92
We derive microscopic foundations for a well-known probabilistic herding model in the agent-based finance literature. While the model is quite robust with respect to behavioral heterogeneity, the network structure describing the very feasibility of agent interaction turns out to have a crucial...