Showing 1 - 6 of 6
Seminal models of herd behaviour and informational cascades point out existence of negative information externalities, and propose to ?destroy? information in order to achieve social improvements. Although in the last years many features of herd behaviour and informational cascades have been...
Persistent link: https://www.econbiz.de/10010295229
Seminal models of herd behaviour and informational cascades point out existence of negative information externalities, and propose to ?destroy? information in order to achieve social improvements. Although in the last years many features of herd behaviour and informational cascades have been...
Persistent link: https://www.econbiz.de/10010295299
We study a two-player dynamic investment model with information externalities and provide necessary and sufficient conditions for a unique switching equilibrium. Within this setup, we ask whether policymakers should interfere when better informed agents make individual investment decisions. We...
Persistent link: https://www.econbiz.de/10010352078
This paper performs a welfare analysis of economies with private information when public information is endogenously generated and agents can condition on noisy public statistics in the rational expectations tradition. We find that equilibrium is not (restricted) efficient even when feasible...
Persistent link: https://www.econbiz.de/10010274908
In this paper, we analyze the asymmetric pure strategy equilibria in a dynamic game of pure information externality. Each player receives a private signal and chooses whether and when to invest. In some of the periods, only a subgroup of the players make decisions, which we call bunching, while...
Persistent link: https://www.econbiz.de/10010290311
Economists tend to assume that agents maximize their expected utility. However, many different experiments have questioned expected utility maximization by showing that human behavior can be characterized as random. This paper proposes Thompson Sampling as a theory of human behavior across very...
Persistent link: https://www.econbiz.de/10012099162