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Teraji Shinji

Affiliate Master Yamaguchi University

Herd behavior and the quality of opinions

Journal of Socio-Economics Volume 32 Issue 6 Page 661-673
published_at 2003-12
Title
Herd behavior and the quality of opinions
Creators Teraji Shinji
Creator Keywords
Herd behavior Social learning Opinions Equilibrium selection
This paper analyzes a decentralized decision model by adding some inertia in the social leaning process. Before making a decision, an agent can observe the group opinion in a society. Social learning can result in a variety of equilibrium behavioral patterns. For insufficient ranges of quality (precision) of opinions, the chosen stationary state is unique and globally accessible, in which all agents adopt the superior action. Sufficient quality of opinions gives rise to multiple stationary states. One of them will be characterized by inefficient herding. The confidence in the majority opinion then has serious welfare consequences.
Languages eng
Resource Type journal article
Publishers Elsevier
Date Issued 2003-12
File Version Not Applicable (or Unknown)
Access Rights metadata only access
Relations
[ISSN]1053-5357
[NCID]AA10867870
info:doi/10.1016/j.socec.2003.10.004
[isVersionOf] [URI]http://www.sciencedirect.com/science/journal/10535357
Schools 経済学部