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Herding With and Without Payoff Externalities - An Internet Experiment
2004
Social Science Research Network
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 experimentally investigate the effects of several different forms of payoff externalities (e.g., network effects, first-mover advantage, etc.) in a standard information-based herding model. Our results are based on an internet experiment with
doi:10.2139/ssrn.579904
fatcat:qqiqwe2ofnf7tn472yfh45ygoi