explicit nature of the dynamics of the CBS we show that the introduction of herding modifies the random walk to an ARIMA($0 …

We investigate whether two heuristics, the peak-end rule and herding, lead to cognitive biases in the index of consumer … herding consists in a too strong relationship from expectations about the future of respondents interviewed in a first round …

performance, together influence the decision to hold on to or to capitulate on an investment. We study the relative contribution … decision to capitulate an investment, however, only depends directly on the expectation about the stock’s future performance …. The adaptation level, by contrast, affects the actual investment decision indirectly via its impact on expectations. …

works in anindividual decision experiment. Subjects are faced with a sequentialsearch problem. After extensive practice …