, one in which the price adjusts to the order flow so that herding should never occur, and one in which event uncertainty … makes herding possible. In the first treatment, subjects herd seldom, in accordance with both the theory and previous … by the theory. In the second treatment, the proportion of herding decisions increases, but not as much as theor …

, one in which the price adjusts to the order flow so that herding should never occur, and one in which event uncertainty … makes herding possible. In the first treatment, subjects herd seldom, in accordance with both the theory and previous … by the theory. In the second treatment, the proportion of herding decisions increases, but not as much as theory suggests …