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Comparative Statics in a Herding Model of Investment

Pastine, Tuvana - Econometric Society - 2004

social learning can result in herding and possibly in an inefficient cascade. While Chamley and Gale characterize the … attacks and IPO underpricing among others. However, it has proven difficult to move beyond the demonstration that herding may … inefficient herding in these markets. This paper develops a framework that may be useful in providing a first pass in the analysis …

Persistent link: https://www.econbiz.de/10005063698

Dynamic Forecasting Behavior by Analysts: Theory and Evidence

Subramanian, Ajay; Clarke, Jonathan - Econometric Society - 2004

We examine the dynamic forecasting behavior of security analysts in response to their prior performance relative to their peers within a continuous time/multi-period framework. Our model predicts a U-shaped relationship between the boldness of an analyst's forecast, that is, the deviation of her...

Persistent link: https://www.econbiz.de/10005063584

Herding and Contrarian Behavior in Financial Markets - An Internet Experiment

Drehmann, Mathias; Oechssler, Jörg - Econometric Society - 2004

the experiment. As predicted by theory, we find that the presence of a flexible market price prevents herding. However …

Persistent link: https://www.econbiz.de/10005170272

Community Enforcement and the Emergence of Trust

Rodríguez-Sickert, Carlos - Econometric Society - 2004

In this paper, the link between community enforcement and co-operation in environments where trust is required is investigated. For this purpose, an assymetric trust game in which peer-to-peer sanctioning mechanisms are available is considered. Firstly, the outcome of this game is characterised...

Persistent link: https://www.econbiz.de/10005699593