EconPapers    
Economics at your fingertips  
 

Do We Follow Others When We Should? A Simple Test of Rational Expectations: Comment

Anthony Ziegelmeyer, Christoph March and Sebastian Kr?gel

American Economic Review, 2013, vol. 103, issue 6, 2633-42

Abstract: The payoff of actions is estimated and the resulting empirical payoff is controlled for in regression analyses to formulate a test of rational expectations in information cascade experiments. We show that the empirical payoff of actions is a function of estimates of choice probabilities and estimates of the information parameters of the game. We introduce an alternative empirical payoff of actions with true values of the information parameters. Our improved measure of the success of social learning confirms that rational expectations are violated, but deviations from rational expectations are statistically significantly smaller than in Weizsacher (2010).

JEL-codes: D82 D83 D84 (search for similar items in EconPapers)
Date: 2013
Note: DOI: 10.1257/aer.103.6.2633
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5) Track citations by RSS feed

Downloads: (external link)
http://www.aeaweb.org/articles.php?doi=10.1257/aer.103.6.2633 (application/pdf)
http://www.aeaweb.org/aer/ds/oct2013/20120241_ds.zip (application/zip)
http://www.aeaweb.org/aer/data/oct2013/20120241_data.zip (application/zip)
http://www.aeaweb.org/aer/data/oct2013/20120241_app.pdf (application/pdf)
Access to full text is restricted to AEA members and institutional subscribers.

Related works:
Working Paper: "Do We Follow Others when We Should? A Simple Test of Rational Expectations": Comment (2012) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:aea:aecrev:v:103:y:2013:i:6:p:2633-42

Ordering information: This journal article can be ordered from
https://www.aeaweb.org/journals/subscriptions

Access Statistics for this article

American Economic Review is currently edited by Esther Duflo

More articles in American Economic Review from American Economic Association Contact information at EDIRC.
Bibliographic data for series maintained by Michael P. Albert ().

 
Page updated 2019-09-30
Handle: RePEc:aea:aecrev:v:103:y:2013:i:6:p:2633-42