Bose, Subir; Orosel, Gerhard O.; Vesterlund, Lise - 2002
We consider a monopolist who sells identical objects of common but unknown value in a herding-prone environment. Buyers … pattern of prices and for herding. The analysis is performed under alternative assumptions about observability of prices. We … find that when previous prices are observable, herding may but need not arise. In contrast, herding arises immediately when …