observational learning accounts for the phenomenon of excessive herding, it captures well herd behavior with medium quality signals …We designed four observational learning experiments to identify the key channels that, along with Bayes … actions that contradict their high quality signals they herd more extensively than predicted by Bayes-rational herding …

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 …

when they make stock recommendations. Our empirical results support the herding hypothesis. Stock price reactions following …