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Social Influence and Household Decision-Making: A Behavioural Analysis of Housing Demand

Baddeley, M. - Faculty of Economics, University of Cambridge - 2011

Housing markets are subject to many interrelated sources of instability on both a microeconomic and macroeconomic scale. Housing decisions of different individuals will be interdependent, generating non-linearities, discontinuities and feedback effects. This paper focuses in on some behavioural...

Persistent link: https://www.econbiz.de/10009024890

Controlling the Herd: Applications of Herding Theory

Sgroi, D. - Faculty of Economics, University of Cambridge - 2001

The literature on informational cascades and herding theory has for a decade focused on the externality and suboptimal … marketing and business arising from herding theory. We see that business practices such as encouraging early sales, or selling … to groups rather than individual customers, can be justified theoretically by direct application of herding theory. …

Persistent link: https://www.econbiz.de/10005647371

The Superiority of Tough Reviewers in a Model of Simultaneous Sales

Gill, D.; Sgroi, D. - Faculty of Economics, University of Cambridge - 2003

This paper considers the impact of reviewers on the sale of a product of unknown quality. Sales occur simultaneously after an initial review by an unbiased, pessimistic or optimistic reviewer and we examine the impact on sales in each case. We find that counter-intuitively a pessimistic reviewer...

Persistent link: https://www.econbiz.de/10005783744

Modelling Experience as Signal Accumulation

Sgroi, D. - Faculty of Economics, University of Cambridge - 2002

Experience gained in a workplace characterised by decision-making and learning-by-doing is modelled via a process of signal accumulation under several different frameworks. We initially look at the probability of success based on uninterrupted signal accumulation, then consider the impact of...

Persistent link: https://www.econbiz.de/10005783765

Product Launches with Biased Reviewers: The Importance of Not Being Earnest

Gill, D.; Sgroi, D. - Faculty of Economics, University of Cambridge - 2003

The standard simple sequential herding model is altered to allow a firm with a new product to have it reviewed publicly before launch. Reviewers are either inherently pessimistic, optimistic or unbiased. We find the counter-intuitive result that a firm with a good product will prefer a...

Persistent link: https://www.econbiz.de/10005783848

Banker Compensation and Confirmation Bias

Sabourian, H.; Sibert, A.C. - Faculty of Economics, University of Cambridge - 2009

Confirmation bias refers to cognitive errors that bias one towards one's own prior beliefs. A vast empirical literature documents its existence and psychologists identify it as one of the most problematic aspects of human reasoning. In this paper, we present three related scenarios where...

Persistent link: https://www.econbiz.de/10008506828

Herding And Social Pressure In Trading Tasks: A Behavioural Analysis

Baddeley, M.; Pillas, D.; Christopoulos, Y.; Schultz, W.; … - Faculty of Economics, University of Cambridge - 2007

We extend the experimental literature on Bayesian herding using evidence from a financial decision-making experiment. We identify significant propensities to herd increasing with the degree of herd-consensus. We test various herding models to capture the differential impacts of Bayesian-style...

Persistent link: https://www.econbiz.de/10005113886

Spatial Dispersion of Peering Clusters in the European Internet

D'Ignazio, A.; Giovannetti, E. - Faculty of Economics, University of Cambridge - 2006

We study the role played by geographical distance in the peering decisions between Internet Service Providers. Firstly, we assess whether or not the Internet industry shows clustering in peering; we then concentrate on the dynamics of the agglomeration process by studying the effects of...

Persistent link: https://www.econbiz.de/10005489326

Network Procurement Auctions

Greve, Thomas; Michael, Michael G. Pollitt … - Faculty of Economics, University of Cambridge

In most network asset procurement exercises, network configurations are predefined by the auctioneers. Bidders can neither propose different network configurations nor can they submit bids on a group of network links. We believe the market itself can be designed better. We present a lot...

Persistent link: https://www.econbiz.de/10010790559

Links and Architecture in Village Networks (previously: Endogenous Network Formation and Informal Institutions in Village Economies)

Krishnan, P.; Sciubba, E. - Faculty of Economics, University of Cambridge - 2004

This paper o¤ers a bridge between the theoretical literature on endogenous network formation and the empirical work on the impact of social networks on economic performance. We provide a theoretical framework of endogenous network formation that yields testable predictions for the network...

Persistent link: https://www.econbiz.de/10005647353