logo
CanyamAI summaries for academic research
language
MobileMobile
  • Phone FeatureWeChat Mini Program
EnglishEnglish
noticeNotice
BlogBlog
delete
arrow
Return

Self-correcting information cascades

delete2007-07-01
delete103
delete
OA
AI
J
Jacob K. Goeree *
T
Thomas R. Palfrey
B
Brian W. Rogers
R
Richard D. McKelvey
DOI：10.1111/j.1467-937X.2007.00438.xdelete
deleteOriginal
deleteShare
deleteSave
View PDF
Abstract

Abstract

En 中文
We report experimental results from long sequences of decisions in environments that are theoretically prone to severe information cascades. Observed behaviour is much different-information cascades are ephemeral. We study the implications of a theoretical model based on quantal response equilibrium, in which the observed cascade formation/collapse/formation cycles arise as equilibrium phenomena. Consecutive cascades may reverse states, and usually such a reversal is self-correcting: the cascade switches to the correct state. These implications are supported by the data. We extend the model to allow for base rate neglect and find strong evidence for overweighting of private information. The estimated belief trajectories indicate fast and efficient learning dynamics.
Keywords:
NORMAL-FORM GAMES
HERD BEHAVIOR
MODEL
AI Summary

AI Summary

Key information extracted from the uploaded paper, including a brief overview, abstract, background, key highlights, visual analysis, and future outlook.

Journal

Review of Economic Studies cover
Review of Economic Studies
IF:
6.4
Papers:
2.5K
Citations:
2.1W

Organization

No organization information available