IDEAS home Printed from https://ideas.repec.org/a/eee/ecolet/v60y1998i2p163-166.html
   My bibliography  Save this article

Informational cascades with continuous action spaces

Author

Listed:
  • Huck, Steffen
  • Oechssler, Jorg

Abstract

The recent literature on informational cascades has nurtured the impression that cascades can occur only if the action space is coarser than the signal space. In particular, it is sometimes claimed that with continuous action spaces cascades are impossible. In this note we present a simple counter-example showing that this conclusion is not necessarily warranted.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Huck, Steffen & Oechssler, Jorg, 1998. "Informational cascades with continuous action spaces," Economics Letters, Elsevier, vol. 60(2), pages 163-166, August.
    • Handle: RePEc:eee:ecolet:v:60:y:1998:i:2:p:163-166
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0165-1765(98)00094-9
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Vives, Xavier, 1996. "Social learning and rational expectations," European Economic Review, Elsevier, vol. 40(3-5), pages 589-601, April.
    2. Abhijit V. Banerjee, 1992. "A Simple Model of Herd Behavior," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 107(3), pages 797-817.
    3. Gul, Faruk & Lundholm, Russell, 1995. "Endogenous Timing and the Clustering of Agents' Decisions," Journal of Political Economy, University of Chicago Press, vol. 103(5), pages 1039-1066, October.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Antonio Guarino & Philippe Jehiel, 2013. "Social Learning with Coarse Inference," American Economic Journal: Microeconomics, American Economic Association, vol. 5(1), pages 147-174, February.
    2. Antonio Guarino & Philippe Jehiel, 2009. "Social Leanring with Course Inference," WEF Working Papers 0050, ESRC World Economy and Finance Research Programme, Birkbeck, University of London.
    3. Ali, S. Nageeb, 2018. "On the role of responsiveness in rational herds," Economics Letters, Elsevier, vol. 163(C), pages 79-82.
    4. Oberholzer-Gee, Felix, 2008. "Nonemployment stigma as rational herding: A field experiment," Journal of Economic Behavior & Organization, Elsevier, vol. 65(1), pages 30-40, January.
    5. Efraim Berkovich, 2011. "Search and herding effects in peer-to-peer lending: evidence from prosper.com," Annals of Finance, Springer, vol. 7(3), pages 389-405, August.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Lluís Bru & Xavier Vives, 2002. "Informational Externalities, Herding, and Incentives," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 158(1), pages 91-105, March.
    2. Boğaçhan Çelen & Kyle Hyndman, 2012. "An experiment of social learning with endogenous timing," Review of Economic Design, Springer;Society for Economic Design, vol. 16(2), pages 251-268, September.
    3. Levin, Dan & Peck, James, 2008. "Investment dynamics with common and private values," Journal of Economic Theory, Elsevier, vol. 143(1), pages 114-139, November.
    4. Tao Wang, 2011. "Dynamic Equilibrium Bunching," Working Paper 1291, Economics Department, Queen's University.
    5. Jonathan E. Alevy & Michael S. Haigh & John List, 2006. "Information Cascades: Evidence from An Experiment with Financial Market Professionals," NBER Working Papers 12767, National Bureau of Economic Research, Inc.
    6. Stone, Daniel F. & Miller, Steven J., 2013. "Leading, learning and herding," Mathematical Social Sciences, Elsevier, vol. 65(3), pages 222-231.
    7. Stephanie De Mel & Kaivan Munshi & Soenje Reiche & Hamid Sabourian, 2021. "Herding with Heterogeneous Ability: An Application to Organ Transplantation," Cowles Foundation Discussion Papers 2308, Cowles Foundation for Research in Economics, Yale University.
    8. Gregorio Caetano & Vikram Maheshri, 2013. "Do 'Broken Windows' Matter? Identifying Dynamic Spillovers in Criminal Behavior," Working Papers 2013-252-22, Department of Economics, University of Houston.
    9. repec:ebl:ecbull:v:4:y:2003:i:21:p:1-12 is not listed on IDEAS
    10. Schivardi, Fabiano, 2003. "Reallocation and learning over the business cycle," European Economic Review, Elsevier, vol. 47(1), pages 95-111, February.
    11. Cary Frydman & Ian Krajbich, 2022. "Using Response Times to Infer Others’ Private Information: An Application to Information Cascades," Management Science, INFORMS, vol. 68(4), pages 2970-2986, April.
    12. Young-Ro Yoon, 2008. "Strategic Disclosure of Valuable Information within Competitive Environments," CAEPR Working Papers 2008-022, Center for Applied Economics and Policy Research, Department of Economics, Indiana University Bloomington.
    13. Edward L. Glaeser & Jose Scheinkman, 2000. "Non-Market Interactions," NBER Working Papers 8053, National Bureau of Economic Research, Inc.
    14. Gil S. Epstein & Ira N. Gang, 2010. "Why Pay Taxes When No One Else Does?," Review of Development Economics, Wiley Blackwell, vol. 14(2), pages 374-385, May.
    15. Young-Ro Yoon, 2008. "Strategic Disclosure of Valuable Information within Competitive Environments," Caepr Working Papers 2008-022, Center for Applied Economics and Policy Research, Economics Department, Indiana University Bloomington.
    16. Boortz, Christopher & Kremer, Stephanie & Jurkatis, Simon & Nautz, Dieter, 2014. "Information risk, market stress and institutional herding in financial markets: New evidence through the lens of a simulated model," SFB 649 Discussion Papers 2014-029, Humboldt University Berlin, Collaborative Research Center 649: Economic Risk.
    17. Utteeyo Dasgupta & Chandan Kumar Jha & Sudipta Sarangi, 2021. "Persistent Patterns Of Behavior: Two Infectious Disease Outbreaks 350 Years Apart," Economic Inquiry, Western Economic Association International, vol. 59(2), pages 848-857, April.
    18. Elie Ofek & Muhamet Yildiz & Ernan Haruvy, 2007. "The Impact of Prior Decisions on Subsequent Valuations in a Costly Contemplation Model," Management Science, INFORMS, vol. 53(8), pages 1217-1233, August.
    19. Shachar Kariv, 2005. "Overconfidence and Informational Cascades," Levine's Bibliography 122247000000000406, UCLA Department of Economics.
    20. Haibin Zhu, 2000. "Optimal Bank Runs without Self-Fulfilling Prophecies," Econometric Society World Congress 2000 Contributed Papers 1753, Econometric Society.
    21. Randall Morck, 2009. "Generalized Agency Problems," NBER Working Papers 15051, National Bureau of Economic Research, Inc.

    More about this item

    JEL classification:

    • D8 - Microeconomics - - Information, Knowledge, and Uncertainty

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:ecolet:v:60:y:1998:i:2:p:163-166. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/ecolet .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.