We study herd behavior in a laboratory financial market. Subjects receive private information on the fundamental value of an asset and trade it in sequence with a market maker. The market maker updates the asset price according to the history of trades. Theory predicts that agents should never...

This paper studies whether prosocial values are transmitted from parents to their children. We do so through an economic experiment in which children and their parents play a standard public goods game. The experimental data presents us with a surprising result. While we find significant...

We develop a new methodology to estimate herd behavior in financial markets. We build a model of informational herding that can be estimated with financial transaction data. In the model, rational herding arises because of information-event uncertainty. We estimate the model using data on a NYSE...