Policymakers often express concern that herding by financial market participants destabilizes markets and increases the fragility of the financial system. This paper provides an overview of the recent theoretical and empirical research on herd behavior in financial markets. It addresses the...

The concept of first-order stochastic dominance defined on distributions is inadequate in models with learning. We extend this concept to the space of distributions on distributions. We discuss conditions under which for all common observations one person's beliefs (over a set of probability...

The sequential search problem, without the assumption that the searcher knows the underlying distribution, is investigated. Both search with recall and without recall are examined. Sufficient conditions for the existence of optimal stopping rules with the reservation property are provided....