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We study reputational herding in financial markets in a laboratory experiment. In the spirit of Dasgupta and Prat (2008 …
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We study reputational herding in financial markets in a laboratory experiment. In the spirit of Dasgupta and Prat (2008 …
Persistent link: https://www.econbiz.de/10013029493
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 …, one in which the price adjusts to the order flow so that herding should never occur, and one in which event uncertainty …
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