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

use numerical simulations of a herd model to derive new, theory-based predictions for aggregate herding intensity. From an …Due to data limitations and the absence of testable, model-based predictions, theory and evidence on herd behavior are … only loosely connected. This paper attempts to close this gap in the herding literature. From a theoretical perspective, we …

build a structural model of informational herding that can be estimated with financial transaction data. In the model …, rational herding arises because of information-event uncertainty. We estimate the model using 1995 stock market data for … Ashland Inc., a company listed on the New York Stock Exchange. Herding occurs often and is particularly pervasive on certain …

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