Eyster, Erik; Galeotti, Andrea; Kartik, Navin; Rabin, … - In: Games and Economic Behavior 87 (2014) C, pp. 519-538
We study observational learning in environments with congestion costs: an agent's payoff from choosing an action decreases as more predecessors choose that action. Herds cannot occur if congestion on every action can get so large that an agent prefers a different action regardless of his beliefs...