We designed four observational learning experiments to identify the key channels that, along with Bayes … observational learning accounts for the phenomenon of excessive herding, it captures well herd behavior with medium quality signals …-rational inferences, drive herd behavior. In Experiment 1, unobserved, whose actions remain private, learn from the public actions made in …

We analyze a game theoretic model of social learning about a consumption good with endogenous timing and heterogeneous … increase the probability of herding on consumption of both high and low quality goods …

There are many important decision problems where learning through experimentation is costly or impossible. In these …. In this paper, we design an investment game which allows us to study the influence of selection when learning from others … degree of bias due to selection neglect increases when other decision makers become more informed, or become more rational …

individual's intrinsic ability and on an external variable. We analyze the mistakes made by decision-makers who hold inaccurate … external factors if they fail. They are too easily dissatisfied with their environment, which leads them to experiment in … variable environments and revise their self-confidence over time. In contrast, underconfident decision-makers might be trapped …

heuristic, gambler’s fallacy and hot hand fallacy—on the mechanisms of stock market decision making and, in particular, the … decision-making technique will most likely accept other techniques as well. Furthermore, we determine that the correlation … on simplifying decision-making techniques in general or to reject all of them. Alternatively, this finding may suggest …