Most real world situations that are susceptible to herding are also characterized by direct payoff externalities. Yet, the bulk of the theoretical and experimental literature on herding has focused on pure informational externalities. In this paper we experi- mentally investigate the effects of...

Verl.Beschr.: Das Finanzmagazin Forbes nannte Charles MacKays Werk das ?wichtigste Buch, das je über Investments geschrieben worden ist?. Der Leser erfährt authentisch und äusserst unterhaltsam alles über den Tulpenwahn in Holland von 1634 bis 1637, John Laws grosses Mississippi-Projekt von...

This paper sheds new light on herding of institutional investors by using a unique and superior database that identifies every transaction of financial institutions. First, the analysis reveals herding behavior of institutions. Second, the replica- tion of the analysis with low-frequent and...