This paper extends Savage's subjective approach to probability and utility from decision problems under exogenous uncertainty to choice in strategic environments. Interactive uncertainty is modeled both explicitly, using hierarchies of preference relations, the analogue of beliefs hierarchies,...

We show that far from capturing a formally new phenomenon, informational herding is really a special case of single-person experimentation ­ and 'bad herds' the typical failure of complete learning. We then analyze the analogous team equilibrium, where individuals maximize the present...

We prove that the recently proposed informational herding models are but special cases of a standard single person experimentation model with myopia. We then re-interpret the incorrect herding outcome as a familiar failure of complete learning in a optimal experimentation problem. We next...